Exchequer Returns signal importance of prudence in Budget 2019
Commenting on the release of today’s (4 September 2018) Fiscal Monitor, Anthony Cooney, Chief Executive of Fingal Dublin Chamber said,
“The results from today’s Exchequer Returns indicate that Budget 2019 must be a prudent one.
Considering these returns alongside the economic uncertainties facing us from a variety of external factors, we urge Government to ensure that Budget 2019 is not a free-for-all.
The message from business is clear: the commitments on infrastructure and investment made in Project Ireland 2040 must be delivered upon.
Additionally, Government must look at measures that will work to increase labour market participation in Budget 2019, such as increasing investment in childcare, while also seeking to bolster our economy in the final runup to Brexit and ensuring that we enhance competitiveness in a sustainable manner.
With a strong performance in corporate tax receipts - again above profile - we would stress the importance of avoiding over-reliance on this income stream, and we recommend that any receipts that are above profile be allocated to the Rainy Day Fund. This measure should ensure the sustainability of funding for large-scale infrastructure projects under Project Ireland 2040 should GDP growth fall in the future.
Overall, we should be cautiously optimistic in our approach to Budget 2019, planning for growth while preparing for challenges.”