Donohoe: long-term spending commitments need to match sustainable revenues

The Minister for Finance sought to counter concerns raised by the Fiscal Advisory Council on the €5.4 billion rise in core expenditure

Paschal Donohoe emphasised that the increase had been driven by core capital spending and health spending, which were both necessary and key stimulants of the economy. Picture: Julien Behal Photography

The gap between the state’s revenues and expenditure will decrease over time and the rate of borrowing will be slowed to ensure the sustainability of public debt, Paschal Donohoe has said.

The finance minister was responding in writing to the Irish Fiscal Advisory Council’s recent fiscal assessment report, which warned that the government’s spending forecasts “lacked credibility” and were inconsistent with spending commitments.

Responding to the council’s criticism that an increase of €5.4 billion in ...