Home > Economy > Government aims for €1.5bn worth of tax cuts and spending increases

Government aims for €1.5bn worth of tax cuts and spending increases

Written by Robert McHugh, on 30th Apr 2015. Posted in Economy

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The Irish Government announced in its April economic statement that it expects the government deficit to fall to 2.3% of GDP in 2015, well inside the 2.7% forecast in last year’s Budget. 

Furthermore, the Minister for Finance announced that he expects to implement €1.5bn (or 0.8% of nominal GDP) worth of tax cuts and spending increases in October’s Budget for 2016. The coalition partners have agreed to split the Budget giveaway 50/50 between tax cuts and spending increases.
 
The official projections envisage gross debt falling from 109.7% of nominal GDP at end-2014 to 100% by end-2016.
 
Davy Stockbrokers believe that the forecasts for  2015’s deficit are still too conservative and that there is still more room for manoeuvre in Budget 2016.
 
Source: www.businessworld.ie 
 

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