Finance Minister Brian Cowen, in his Budget 2008 speech, has said the economy will grow at a 'relatively modest pace' next year.
He says the global economy is beset with difficulties and the Irish construction sector has slowed, while the euro's strength was a particular concern. The fundamentals of the economy remains strong, however.
Mr Cowen said his priorities were to protect the weaker in society through maintaining a high level of social spending; to deliver better and more effective public services; to seek value for money at all levels of public spending, and to continue to invest heavily in public infrastructure.
Mr Cowen said the growth in public spending had to moderate, but he was providing for an increase of 8.2% in current spending and 12% in capital spending. He is planning a general Government deficit of 0.9% next year.
The Minister predicted economic growth - measured by GDP - of 3% next year, with 24,000 new jobs created, down from more than 70,000 this year.
He also said the Government had agreed to an efficiency review of all administrative spending across the whole public service, adding that all departments must 'continue to monitor closely and examine carefully how efficiently and effectively resources'.
See RTE's Budget site here.
