The Minister for Finance Brian Lenihan has said that the main aim of tomorrow's Budget is to stabilise the public finances in the face of the most difficult conditions in living memory.
He said that the Government had looked at every facet of spending and had agreed to implement cuts equivalent to 1% of GDP or almost €2 billion.
The Minister said that the cuts would not be confined to the public sector pay bill but would also affect consultancies, advertising and schemes run in all departments. The only department to escape cuts, he said, would be the Department of Social Welfare, where provisions had to be made for higher numbers of unemployed people and increases in social welfare payments.
The Minister said it was essential for the Government to protect the most vulnerable in society, but he also emphasised that it was essential that social benefits were targeted at those who needed them most.
Mr Lenihan said that the Budget would aim to boost economic confidence and send a strong message that Ireland is still a good place to do business.
