Notably, Budget 2018 included a 5 per week increase in social

Alarm bells should ring over our spending spree amid budget deficit

moncler outlet store This is a skewed perception of Ireland’s fiscal position. moncler outlet store

moncler factory outlet The reality is that public spending is now growing rapidly, funded by buoyant tax revenues, but with only moncler outlet store modest progress towards achieving a budget surplus. moncler factory outlet

This poses risks, especially with the economy facing the threat of Brexit, protectionism in global trade and with corporate tax revenues still heavily reliant on the multinational sector.

Of course, June’s exchequer returns showed buoyant tax revenues.

moncler jacket sale The key tax headings cheap moncler sale were all up sharply on 2017: incomes taxes by 8pc; value added taxes by 2.8pc; and corporation taxes 15pc. This reflects Ireland’s strong economic performance. moncler jacket sale

moncler sale Once again corporation taxes were the stand out performer but remain reliant on a small number of multinational sector companies, exposed to developments in the IT and pharmaceutical sectors. Global tax reforms still pose risks. This is moncler outlet a potentially unstable platform from which to launch rapid spending increases. moncler sale

cheap moncler coats Gross voted current expenditure was up sharply by 6pc and is now 68m over budget. Not surprisingly the perennially over spending Department of Health was the chief culprit. cheap moncler coats

Current spending on health is already 168m over budget, up 9pc on the first half of 2017, adding to concerns spending discipline is being eroded.

Indeed, the Government’s own Summer Economic Statement almost reads as a critique of budgetary policy.

cheap moncler jackets Comparable small European economies with low unemployment rates are now running budget surpluses, including the Czech Republic (1.6pc of GDP), Denmark (1.0pc), Luxembourg (1.5pc), Malta (3.9pc), Netherlands (1.1pc), Slovenia (0.0pc) and Sweden (1.3pc). cheap moncler jackets

Ireland is clearly lagging behind cheap moncler jackets on this front.

moncler outlet uk Furthermore, the government debt/GDP ratio among these EU countries averaged 45pc in 2017. Irish Government debt is still close to 200bn, or 100pc of national income. moncler outlet uk

The headline debt/GDP ratio is expected to be 66pc in 2018 but that is flattered by the many problems that are distorting Ireland’s GDP measure.

moncler outlet sale What is clear is that Ireland’s public debt level is still too high and there is a case for budget surpluses to run it down more aggressively. moncler outlet sale

cheap moncler jackets sale No doubt debt servicing moncler sale outlet costs will rise as the ECB ends its quantitative easing programme and slowly begins to raise official interest rates. cheap moncler jackets sale

cheap moncler However, the date at which Ireland is expected to achieve a budget surplus has been pushed back in recent budgets, originally expected to moncler outlet online be achieved in 2018, but now only expected in 2020. cheap moncler

moncler outlet online Of course, Ireland has cheap moncler coats made enormous progress in reducing its budget deficit, from 11bn in 2013 to 1.5bn in 2016. However, the purse strings have been loosened since then. moncler outlet online

cheap moncler outlet Total spending is now expected to equal 62bn in 2018, 15pc higher than originally envisaged. The strategy since 2016 has been to make consistent but modest improvements in the deficit. cheap moncler outlet

The growth in spending can be traced back to the general election and ‘confidence and supply’ agreement between Fine Gael and Fianna Fail.

moncler outlet The agreement committed to maintain at least a 2:1 ratio of spending increases over tax cuts in the Budgets for 2017 onwards. This ‘four legs good, two legs bad’ approach to managing the public finances is long on ideology, but short on ensuring value for money for tax payers. Notably, Budget 2018 included a 5 per week increase in social welfare benefits, such as jobseekers benefit and the basic state pension but with smaller gains through tax cuts for those on the average wage. moncler outlet

The narrative that voters expressed a preference for spending over tax cuts seems questionable given the extent of support for parties advocating the unrealistic goal of eliminating the Cheap Moncler Jackets USC. In any case, the actual ratio of spending increases to tax cuts since the 2016 election has been far higher.

Despite rapid growth in the Irish economy, Budget 2018 was forced to raise revenue in net terms, including a higher 6pc rate of stamp duty on commercial property.

Unfortunately, the EU fiscal rules that Ireland signed up to under the Fiscal moncler outlet sale Compact treaty will do little to maintain fiscal discipline. Remarkably, they would allow a budget giveaway of 4.5bn in 2018. Once again, there is now a danger that EU fiscal rules, inappropriately set for Ireland, will provide political cover for overly exuberant public moncler mens jackets spending.

The Summer cheap moncler outlet Economic Statement indicates the Government plans to pursue a similar strategy out to 2021, gradually moving into a budget surplus, but with the bulk of additional revenues allocated to further spending increases.

moncler outlet jackets Specifically, as the moncler sale National Development Plan is rolled out, capital expenditure is buy moncler jackets set to almost double, from 4.6bn in 2017 to 8.6bn by 2021. moncler outlet jackets

The case for higher public capital expenditure is compelling especially given the lack of investment over the past decade and emerging infrastructural bottlenecks.

However, it remains to be seen whether the political system will allow monlcer down jackets funds to be prioritised towards Cork, Galway, Limerick and Waterford.

moncler jackets outlet The intention is to help facilitate growth in these areas and diversify population and economic growth away from the capital. moncler jackets outlet

This may be a laudable goal, however as we raise spending we should be conscious that Ireland is now lagging behind its European peers, by still running a budget deficit.