Budget adjustment ‘won’t be €2bn’ as economic forecast improves
Minister for Public Expenditure Brendan Howlin has said the Government will have a “less demanding” Budget than expected for 2015.
The minister made the comments this morning as he made his way to the Cabinet where the approach to the next Budget will be discussed.
“We certainly will not have to make the adjustments to the €2bn scale that was forecast in last year’s Budget that would be required in 2015 to get to the deficit target of 3pc or below. We’ll have a less demanding Budget than that”
Mr Howlin said that the economy had improved better than expected and that the future economic outlook is improving.
Today, a joint memo setting out overall targets is to be brought.
Finance Minister Michael Noonan said that he expected the deficit the deficit to be reached without the need for the same level of cuts seen in recent years.
“In April when we were making the adjustments, we thought that it would be necessary to increase tax and cut expenditure by €2bn,” he said, also on his way to Cabinet this morning.
“We’ll get under 3pc now by making less cuts and less tax increases. But it’s too early in the year yet to say by how much but it won’t be €2bn”