The government’s expected to confirm today that half of next year’s ‘fiscal space’ has already been eaten up.
Paschal Donohoe is expected to have 1.2 billion to spend on new measures in the Budget in three months’ time.
But today’s Summer Economic Statement is set to confirm that over half of that has already been ring-fenced elsewhere.
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In essence what happened is that last year’s Budget included some measures that didn’t take immediate effect.
And when you include what’s called the ‘carry over’ effect, the 1.2 billion is actually reduced to 500 million.
And given that the government has already committed to favoring spending increases, ahead of tax cuts, it means there won’t be much left for cutting the likes of the USC.
