Brendan Keenan: Pressure grows for a tougher Budget
Bank claims Lenihan's forecasts too optimistic
Published 31/07/2010 | 05:00
FINANCE Minister Brian Lenihan is under pressure to produce an even tougher Budget in December after the Central Bank warned his growth forecasts are too optimistic.
In its latest quarterly review, the bank put the rise in economic output (GDP) next year at 2.8pc -- well below the 3.3pc in the Budget calculations.
That difference could mean a €300m shortfall in tax receipts next year, and bank economists urged the minister to cover any loss with more tax rises and spending cuts.