Government confirms €15bn target for Budget cuts
The Government has today announced that it is to implement €15bn in cuts and tax hikes over the next four years.
Finance Minister Brian Lenihan said this evening a "significant frontloading" will be required in December's Budget, saying the precise figure of the correction in 2011 will be made known in mid-November.
Mr Lenihan says the Government realises the adjustment and considerable revenue raising measures required will have an impact on living standards, but the measures cannot be delayed.
The massive figure – twice the initial estimate – was blamed on higher debt costs and predictions that the economy will grow at a slower pace than first thought.
After a day-long Cabinet meeting to discuss where multibillion-euro cuts can be made, a Government statement warned it was not possible to put off the pain.
“The Government realises that the expenditure adjustments and revenue-raising measures that must now be introduced will have an impact on the living standards of citizens,” it said.
“But it is neither credible nor realistic to delay these measures.
“To do so would further undermine confidence in our ability to meet our obligations and responsibilities and delay a return to sustainable growth and full employment in our economy.”
Labour Deputy Leader and Finance Spokeswoman Joan Burton said the Government was refusing to reveal key information that explained how it came to the €15bn figure.
Ms Burton said other basic economic information was also being withheld from the public and Opposition parties.
“The Government has not yet produced their forecast for economic growth and employment for the next four years to explain the basis for their plan,” she said.
“They have not yet set out what their growth forecast is for 2011, nor have they agreed that forecast with the European Commission.”
Ms Burton said there was still no clarity on the savings needed in December’s Budget, the impact of the bank bailout on the national deficit and savings expected from the Croke Park deal.
“Frankly, if this is the basis on which the Government is having its two-day meeting, then it’s little wonder that the country is in the mess it is in,” she added.
