The Government has set out two different scenarios for Budget 2020 - with the outcome of Brexit still up in the air.
The Finance Minister Paschal Donohoe outlined his plans in the in the Summer Economic Statement in this afternoon.
He said Budget 2020 will look very different depending on the outcome of the UK’s exit from the EU – currently scheduled for October 31st.
Finance Minister Paschal Donohoe arrives to deliver the Government’s Summer Economic Statement (SES) at Government Buildings, 25-06-2019. Image: Leah Farrell/RollingNewsIf the UK leaves with a deal, the budget will include a €700m increase in capital spending as set out in the Stability Programme Update earlier this year.
Should the UK crash out however, the Government will be forced to borrow heavily to deliver on that spending pledge, while also increasing its spend on social welfare and supports for industries that will suffer.
Describing Brexit as an “economic and political event that has never happened before,” Minister Donohoe said failure to agree a deal could cut economic growth by up to 3.5%.
Ahead of the announcement, Labour leader Brendan Howlin said Fine Gael was attempting to ‘mend its broken hand’ by promising spending increases.
Paschal Donohoe hints that if there's a no-deal Brexit tax cuts are still possible but they may be delayed over a number of years. Priority in that scenario will be protecting jobs
— Seán Defoe (@SeanDefoe) June 25, 2019
“It is quite clear that they have no reputation left in terms of prudent fiscal management of the economy,” he said.
“They have burned money on any of the major capital plans under their purview.
“The Children’s Hospital; the National Broadband Plan and, by the looks of it, Metro North.”
Minister Donohoe insisted the economy is “being well-managed and is in a very different place to where it was a decade ago.”
