Commenting on the release of yesterday’s (2 October 2018) Fiscal Monitor, Ian Talbot, Chief Executive of Chambers Ireland said, “Today’s final Exchequer Returns before the announcement of Budget 2019 next week holds no surprises or promises of any giveaway.
They do however illustrate the ongoing need for prudent decisions. From the perspective of business, we need to see delivery on promised investment, particularly in infrastructure.
Available spending should be used to tackle the high costs of living.
In our own submission we’ve also called on Government to deliver on value for money investment in affordable childcare and housing delivery.
Further, with Brexit on the horizon, we’re approaching what could be a very turbulent few months, so it’s somewhat concerning that tax receipts overall are still running behind target, and certain income streams, like corporate tax, continue to be volatile.
This is the fifth consecutive month where corporate tax receipts have been above profile.
While this strong performance should be welcomed, we reiterate our message that we should not overly rely on this income or use it to fund recurring expenditure.
Instead, as outlined in our submission to Government, any above profile receipts should be allocated to the Rainy Day Fund and used to support infrastructure delivery in the coming years, should we enter a more challenging economic cycle.”