When a broadcast by the Taoiseach, Charles J. Haughey, warned that, "...as a community, we are living away beyond our means", the nation braced itself for Michael O'Kennedy's budget.

Haughey opens with the line: "I wish to talk to you this evening about the state of the nation's affairs, and the picture I have to paint is not unfortunately a very cheerful one".

The budget would see increased PAYE allowances and widened tax bands, along with increased indirect taxation. Taxes on the old reliables like cigarettes, alcohol and petrol, all went up. The Irish Farmers Association felt that the budget was extremely harsh on the farming community.

'A Ministerial Broadcast by An Taoiseach' was broadcast the month prior to the budget announcement and was intended to prepare the Irish public for what was to come.

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