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Leadership

Government’s Pre-Budget Outlook due out today

12.11.2009
The Minister for Finance Brian Lenihan TD is expected to indicate a slightly more upbeat reading of the Irish economy in the pre-budget figures set to be released by the Government later today.

The Irish Times reported earlier this week that the Government’s Pre-Budget Outlook will forecast an economic contraction of 1.5pc in 2010.

The paper also said the Government’s figures will forecast that unemployment rates will rise slightly to 13.75pc.

Back in April’s Supplementary Budget the Government was forecasting almost double an economic contraction of 2.9pc in 2010, and that unemployment would rise to 15pc.

However, in its pre-budget figures the Government is still expected to underline the need for tough cuts, particularly given the European Commission’s recommendation yesterday that Ireland must do more to correct the country’s budget deficit.

Despite yesterday giving Ireland an extra year to whip its budget deficit into shape, the Commission recommended that the Government ensures an average annual structural budgetary adjustment of 2pc of GDP over the period 2010- 2014. This is a 0.5pc increase on the 1.5pc budget adjustment the Government agreed with the Commission last May.

 

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