Ireland: Selected Issues

Ireland: Selected Issues
READ MORE...
Volume/Issue: Volume 2025 Issue 129
Publication date: June 2025
ISBN: 9798229013024
$20.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Economics- Macroeconomics , Public Finance , efficiency frontier , debt fan , major spending category , BENCHMARKING public spending efficiency , prudent debt anchor , debt anchor , Health care spending , Expenditure efficiency , Foreign direct investment , Global

Summary

This Selected Issues paper proposes to strengthen Ireland’s national fiscal framework by establishing a prudent medium-term debt anchor and an expenditure rule to guide the annual budget process. It first establishes a prudent debt anchor for Ireland by calibrating corporate income tax shocks and simulating possible debt trajectories. Second, it proposes an operational rule based on multi-year expenditure ceilings. The ceilings are calibrated such as to stabilize debt at the anchor level while accounting for the economy’s cyclical positions. The paper abstracts from discretionary revenue measures in its analysis, and defines expenditure limits as net of such measures, consistent with the definition of the previous government’s net spending rule. Regular reviews should be conducted to ensure that fiscal rules remain well-calibrated to macroeconomic and fiscal conditions. Adjustments may be necessary as macro-fiscal conditions and structures evolve. Defining the ceilings in terms of growth rates has the benefits of ease of communications and continuity, and with full compliance the two approaches are equivalent.