Budget watchdog recommends tougher budgets13/09/2012 - 11:04:19
The Government's budget watchdog, the Fiscal Advisory Council, is calling on the Finance Minister Michael Noonan to introduce tougher budgets over the next three years.
In its latest report out today the council said the €3.5bn revenue target for December's Budget is exactly what is needed.
However, it is urging the Finance Minister to add an extra €1.9bn in cuts and tax hikes, to be achieved by 2015 to boost the economic recovery.
The issue for the Government is that it is already finding it difficult to make the planned adjustments under the reform programme and adding more cuts would be politically unpalatable.
The Fiscal Advisory Council also said the overruns in health spending have become a pattern of recent years and Ireland's debt sustainability and credit worthiness remain fragile.
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