Wednesday 23 August 2017

Government will have about €1bn for extra spending and cuts in Budget - Summer Economic Statement

Finance minister Michael Noonan
Finance minister Michael Noonan
Colm Kelpie

Colm Kelpie

The Government will have around €1bn for extra spending and tax cuts for October's Budget.

This is according to the Department of Finance's published updated forecasts this afternoon, known as the Summer Economic Statement.

The amount of spending leeway for the next five years is estimated at €11.3bn. This is the amount that remains after providing for demographics, the Lansdowne Road agreement and capital plans.

The so-called fiscal space will be based on a 2.1 split.

Growth this year is forecast to be 4.9pc. The deficit is expected to e bellow 1pc this year, Finance Minister Michael Noonan said.

Debt at the end of this year is expected to fall to 88pc of GDP.

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