Noonan declares an end to austerity with Budget 2015
Finance Minister Michael Noonan has declared the end of austerity with the country’s first tax-cut and spending-increase budget for seven years.
Less than two years from the next general election, Michael Noonan announced the first welfare hikes, income tax reductions and major public recruitment drive since the economy’s spectacular nosedive.
With Ireland now being hailed as one of Europe’s fastest-growing economies, Mr Noonan insisted the country would not return to the boom-and-bust model of the past.
“The road we have travelled to get to this point has been very difficult and the Irish people have made major sacrifices, but the policies pursued by this Government have worked and the recovery in the Irish economy is well under way,” he said.
“The recovery has not spread across the country yet and many families have yet to experience it. The Government is fully aware of this fact.
“For many people, the recovery will only come when they get a job. For some, the recovery will only come when they see more money in their pockets.
“For many families, the permanent return of a loved one who has emigrated will mark the end of the crisis and the start of the recovery.”
Mr Noonan set the scene for the first payback for a country crippled by bank debts.
“This Government will not be returning to the boom and bust model of the past that has spectacularly and repeatedly failed the Irish people,” he said.
Outlining economic forecasts, Mr Noonan told the Dáil he expects GDP growth of 4.7% this year and 3.6% next year.
Unemployment is predicted to come down to 10% next year.
