Ibec is launching its Budget 2022 Campaign, which calls on Government to focus on the continued competitiveness of the private sector to ensure we have the resources available to meet our ambitions on infrastructure & societal needs.
Ibec’s submission outlines new gross spending commitments of €1.6 billion in 2022. This is in line with the Government’s Medium-term budgetary strategy to reduce the deficit by €6 billion between 2021 and 2022.
Ibec Budget 2022 Campaign
Commenting, Ibec Chief Economist, Gerard Brady said: “Ireland faces some unique challenges in the post-Covid era. We have obvious, long-standing infrastructural deficits, significant Government policy commitments in areas like health, housing, pensions, and the labour market and hugely ambitious climate targets to meet. The balance of risks suggests that borrowing for ambitious and necessary investment plans can be prudent. However, these plans can only be delivered if underpinned by the tax returns from continued growth in private sector capacity, exports and returns on investment at home and abroad. Without this, our ambitious plans for the next decade on areas like housing and climate will not be deliverable.
“At the same time, we are also facing significant competitiveness threats to our business model. In today’s submission, we are calling on Government to focus on the continued competitiveness of Irish business.
“This means underpinning our competitive position as trade costs increase due to Brexit and global economic conditions. It also means promoting business investment and investing in digitalisation and innovation. Moreover, we must prepare our business model for potential changes in global corporate tax and build back better from Covid by prioritising investments in skills, giving companies the support necessary to meet ambitious low-carbon targets and solving key quality of life issues.”
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