The Government has submitted a five year economic plan to the EU setting out its spending projections as part of a process of much greater oversight of Ireland’s budgets.
The Medium Term Fiscal and Structural Plan says each EU Government “will commit to a binding fiscal path as well as to a set of public investments and reforms.”
All member states are required to publish their budgetary proposal up to 2030.
While the medium-term plans will be proposed by Member States, these plans must be endorsed by the Council of the EU, on the basis of a positive assessment by the European Commission.
However, when a new Irish Government comes to office after the General Election it can submit new projections.
While Ireland’s calculations do not include specific spending plans for the Apple tax money and the sale of AIB shares which total €17 billion, the Government has broadly outlined its priorities for the funds.
It reiterated that the money would be used for accelerating the upgrade of the water and wastewater infrastructure, expanding the electricity grid, improving transport networks countrywide and strategic infrastructural investment in housing.
The Medium Term Fiscal and Structural plan does not allow for any more spending on “one-off measures” such as energy credits between next year and 2030.
The document flags that predicting the growth of the Irish economy has been complicated by impact of multinationals which have significantly affected forecasts over recent years.
Governments will also have to publish progress reports each April including updates on implementation of agreed reforms and investments.
Finance Minister Jack Chambers said today’s plan reiterates that the Irish economy is in a reasonably healthy position.
“The headline fiscal position has benefited from the post-pandemic recovery of the economy as well as increased revenue flows from the corporate sector in recent years,” Mr Chambers said.
“That being said, I am conscious that the underlying position is markedly less favourable and further progress will need to be made regarding future structural challenges over the medium term,” he added.
Article Source – Government submits five year economic plan to EU – RTE