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National Risk Assessment

Dáil Éireann Debate, Tuesday - 26 September 2023

Tuesday, 26 September 2023

Questions (171)

Peadar Tóibín

Question:

171. Deputy Peadar Tóibín asked the Minister for Finance his views on the National Risk Assessment published in July 2023 by the Department of An Taoiseach which identified that there needs to be a phased withdrawal of substantial resources allocated to the war in Ukraine, Brexit and the cost of living, which is essential to ensuring Ireland’s public finances remain sustainable into the future (details supplied); the total amount allocated to each of these supports for the years 2022 and 2023; the estimated cost for each in Budget 2024; and if he will provide the total cost, per Ireland’s GDP, in financial supports to Ukraine for 2022 and 2023, ranking in order of each OECD country, by GDP. [41265/23]

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Written answers

The challenges of the last several years have necessitated significant fiscal intervention by Government, both through taxation policy measures and temporary or non-core expenditure. As I have stated on many occasions, fiscal policy must strike a balance between providing Government with the scope to act as necessary today and ensuring the sustainability of our public finances over the medium term.

Expenditure allocations are a matter for my colleague, the Minister for Public Expenditure, NDP Delivery and Reform. However, I am advised that approximately €1 billion was spent in 2022 to provide humanitarian support in respect of Ukrainian refugees and that in the first half of 2023 over €1 billion further has been spent. As outlined in the Summer Economic Statement 2023, a contingency provision of €2.0 billion this year and €2.5 billion next year has been made for expenditure related to Ukrainian refugees. The latest available information will be reviewed as part of Budget 2024 and will be taken into account in funding allocations.

Ireland has been allocated over €1 billion under the Brexit Adjustment Reserve (BAR) to mitigate the effects of Brexit. Government has allocated BAR funding for a range of measures in 2022 and 2023, and is also engaging in a process of identifying Brexit-related expenditure during 2020 and 2021. Only eligible expenditure will qualify for funding under the BAR. As such, the precise composition of Ireland's BAR claim will not be finalised until the claim is submitted in September 2024.

In response to the cost of living challenge, Government has, across 2022 and 2023, made available some €12 billion in direct support, with a focus on temporary, timely measures targeted at those most vulnerable.

As the Deputy will appreciate, it would not be appropriate for me to speculate on potential measures that will be subject to decision as part of the budgetary process.

Finally, the Deputy has requested information on Ireland's financial support provided to Ukraine. I am advised by my colleague, the Minister for Foreign Affairs, that international comparison data is not readily available. However, I am advised that the most recent available estimate is that Ireland has provided over €0.2 billion to Ukraine, primarily via the European Peace Facility.

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