Reduce living standards, warns Lenihan
Wednesday, 3 December 2008 22:39
Minister for Finance Brian Lenihan says that we are living beyond our means.
Speaking on RTÉ Morning Ireland following yesterday's Exchequer figures which showed a tax shortfall this year of €8bn, he said that a reduction in our living standards is required.
However, Minister Lenihan said he does not believe that there will be a mini-Budget in the spring and that there is 'little scope' for tax increases next year.
He said there will be further cuts in Government spending once a full picture of tax intake is available at the end of the year.
Earlier, employers' group IBEC called on the Government to make further reductions in expenditure, which take on board the continuing deterioration in the position of the public finances.
Speaking on RTÉ Prime Time last night, NUI Galway economist Alan Ahearne said fiscal stimulation, as was being promoted in large economies such as the US and UK, is not a realistic option in Ireland.
- Nine News: David Davin-Power, Political Correspondent, reports on today's Dáil exchanges on the jobs market
- Morning Ireland: Brian Lenihan, Minister for Finance, discusses his plans for getting public finances back under control
- Morning Ireland: George Lee, Economics Editor, discusses the Government's commitment to the NDP and national borrowing
