Advertisement

Taoiseach says government not bound by Budget advice

The Taoiseach says the government will not be bound by a new report from the Fiscal Advisory Coun...
Newstalk
Newstalk

16.52 13 Sep 2012


Share this article


Taoiseach says government not...

Taoiseach says government not bound by Budget advice

Newstalk
Newstalk

16.52 13 Sep 2012


Share this article


The Taoiseach says the government will not be bound by a new report from the Fiscal Advisory Council urging it to deliver harsher budgets over the next 3 years.

Enda Kenny said the government will consider the latest report from the Council.

It is made up of economists and academics responsible for keeping an eye on Budget plans.

Advertisement

But it is urging the Finance Minister to add an extra €1.9 billion 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 Council also says the overruns in health spending have become a pattern of recent years and the Irish debt sustainability and credit worthiness remain fragile.

It says making the additional adjustment would provide extra insulation for the economy against future financial shocks.

Mr. Kenny was speaking in Dublin where he announced 50 new jobs at the security firm Xtralis.

He said the government will not be bound by the advice.

The Taoiseach added they are sticking to an agreed plan in place with our bailout partners.

Related stories

href="http://www.newstalk.ie/2012/news/government-watchdog-calls-for-tougher-budgets/">[Your Say] Government watchdog calls for tougher Budgets

href="http://www.newstalk.ie/2012/news/fiscal-advisory-council-warns-more-cuts-may-be-needed/">Fiscal Advisory Council warns: More cuts may be needed


Share this article


Read more about

News

Most Popular