INFORMING FISCAL POLICY
Department of Finance
Economic Policy Competition 2017
The Question
 Economic growth is one of a number of indicators
which the Department of Finance uses to inform
appropriate fiscal policy. What kind of fiscal policy
would you advocate for at the moment? What
indicators would you look at in arriving at this
approach?
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Potential issues for consideration…
• Explain why the fiscal stance you are proposing is appropriate, to what extent is
it expansionary, neutral, or contractionary.
• Do changes in the composition of government revenue and expenditure form
part of the fiscal policy you are proposing?
• What are the intended impacts of your fiscal policy and the channels though
which these will be achieved?
• If your proposed fiscal policy differs from that set out in Budget 2017 can you
explain how and why?
• How does your proposed policy takes into account issues such as the public
finances; debt sustainability and borrowing costs; potential effects on domestic
demand and employment; Ireland’s fiscal rules; and competitiveness?
• Are there other factors and indicators which justify your proposed approach?
• Can you back up your policy by reference to economic theory and evidence?
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Useful resources
• Budget Website
www.budget.gov.ie
• Irish Fiscal Advisory Council (IFAC)
www.fiscalcouncil.ie
• Central Statistics Office
www.cso.ie
• Department of Finance Databank
http://databank.finance.gov.ie/
• A Public Finance (Public Economics) Textbook
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