Reilly downplays ESRI's 'end to austerity' comments
Health Minister James Reilly has downplayed a study from the
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Professor John Fitzgerald said that apart from the water charges already in the pipeline, the economy does not need much adjustment.
"If our forecasts were right, next year, barring the water charges, you probably wouldn't need any more cuts," he said. "You'd see an end to austerity."
However, Minister Reilly said fiscal consolidation must continue, despite the forecast of economic growth of 3.5% this year.
The ESRI said the bulk of the economic recovery was now complete and the Government could avoid new taxes or cuts in the next Budget.
However, Minister Reilly said the job was not yet done and added the Government still needed to make cuts.
"We're still spending more than we're taking in (and) no budget can allow that to continue. We have to reach our targets," he said.
Meanwhile, the Minister Social Protection Joan Burton said it would be "foolish" to try and say whether Budget 2015 can be easier than first forecast.
Burton added full planning for the budget has not yet begun and nobody can say whether further spending cuts will be needed.
Minister Burton added there is reason for optimism, but that it is too early to make predictions about how the budget will shape up.
