The Minister for Finance has said his Budget aimed to use the country's economic success as a platform on which to build a fairer, stronger Ireland. The Minister said it would take a long-term approach to economic management.
He said 2006 had been an exceptional year for the public finances but some of this was due to once-off gains. Mr Cowen said he had to be careful that any increase in spending was used efficiently and effectively.
Mr Cowen set a target of a 1.2% general Government surplus for 2007, with current spending rising by 11.5% and capital spending by 13%. The ratio of debt to GDP would be 25%.
The Minister predicted that the economy would grow by 5.25% next year, while 72,000 new jobs would be created and unemployment would remain low. But he warned that there were risks from oil prices, exchange rate movements, higher interest rates and a US downturn.
