Tánaiste Joan Burton has said the Government “followed the rules exactly” in Budget 2016, despite concerns from the Fiscal Advisory Council about the size of the spending package outlined in yesterday’s speeches.
The Fiscal Advisory Council raised concerns about whether the spending plans would meet requirements in place for a strongly-growing economy, with Council Chairman Professor John McHale telling RTE he was surprised by the increase in supplementary spending – and was puzzled by the tactic of increasing spending in a growing economy.
The Government has pointed to additional tax income as covering the additional spending in this year’s Budget – but Prof. McHale said this money should have been used to reduce the deficit.
Speaking to Newstalk Breakfast, Ms Burton said: “We have to look at that we have been asked by Europe and what’s in the treaties. We have been extraordinarily careful, cautious and responsible in the way we have crafted the Budget.”
The Labour leader has insisted that keeping to the rules was a priority for the Ministers for Finance and Public Expenditure in 'crafting' the budget.
“We have a process in Ireland where the people who are on the Fiscal Council ... will examine (the Budget).
“We have set out to meet (European Commission) rules, but equally the Commission knows (that) in every Commissions and OECD report there is a specific commentary in relation to health over-runs. You don’t get pre-approval but what we have done is followed the rules exactly.”
Listen to the Full Newstalk Breakfast interview with Joan Burton below