Business Budget 2019

Wednesday 21 August 2019

European Commission warning over sustainability of State's revenue sources

The European Commission has signed off on Ireland's Budget, saying it is
The European Commission has signed off on Ireland's Budget, saying it is "broadly compliant" with EU rules. Stock picture

Colm Kelpie

The European Commission has signed off on Ireland's Budget, saying it is "broadly compliant" with EU rules.

Ireland was one of five countries that were broadly compliant with the so-called Stability and Growth Pact rules, while six were "compliant".

Five other countries - Belgium, Italy, Austria, Portugal, and Slovenia - were not compliant and exposed to risk.

Each year the Commission gives its view on eurozone member states' draft national budgets. The European Commission said the macroeconomic projections underlying the budget were plausible and broadly in line with the Commission's own forecast.

However it raised concerns about the sustainability of some Government revenue sources.

"In particular, the majority of revenue raising measures (ie reduction in capital allowances for intangible assets; increase stamp duty on non-residential property transactions; increased compliance efforts) is biased towards highly volatile, highly pro-cyclical, highly uncertain tax bases."

Indo Business

Also in Business