Wednesday, September 18 12:24:18
Spending cuts will outweigh new tax revenue initiatives by a factor of two to one in next month's Budget, Minister for Finance Michael Noonan said today.
He warned that the required budget adjustment could not be achieved by tax increases or expenditure cuts alone.
"I think people should know that the adjustments to the budget will be a combination of expenditure cuts and tax increases. It's unrealistic for anyone to suggest you can do it just by increasing taxes," the Minister said.
He emphasised that no specific Budget proposals have been decided yet.
Mr Noonan said the four members of the Economic Management Council had a general chat yesterday, and had worked out an approach for the Budget. The council is made up of Taoiseach Enda Kenny, Tanaiste Eamon Gilmore, Minister Noonan and Minister Brendan Howlin.
He said it was unrealistic to suggest all of the savings could be made just through tax increases, and equally unrealistic to suggest spending cuts alone.
In relation to the total Budget target of E2.5 billion or E3.1 billion, he said it was impossible to come up with a figure at this stage.