| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Irish Economy Last Updated: Oct 27, 2010 - 10:12:08 AM

Ireland Four Year Plan for Budgets: Government announces planned fiscal adjustments of €15bn over four years to meet target deficit of 3% of GDP by 2014
By Finfacts Team
Oct 26, 2010 - 5:45:26 PM

Email this article
 Printer friendly page
From left to right: Jean-Claude Trichet, President of the European Central Bank, and Brian Lenihan, Irish Minister for Finance, in June 2010.

Ireland Four Year Plan for Budgets: The Government has today announced that an overall fiscal adjustment of €15bn over the next four years is warranted in order to achieve the target deficit of 3% of GDP by 2014. The key reasons for the significant increase from the figure announced in Budget 2010 are lower growth prospects both at home and abroad and higher debt interest costs.

The Department of Finance says the purpose of the Four Year Plan for Budgets and Economic Growth is to chart a credible way forward for this country. The size of the adjustment for 2011 and the distribution over the remaining years will be announced in the Four Year Plan. The plan will contain targets for growth and strategies for the achievement of those targets.

The Government said it realises that the expenditure adjustments and revenue raising measures that must now be introduced will have an impact on the living standards of citizens. But it is neither credible nor realistic to delay these measures. To do so would further undermine confidence in our ability to meet our obligations and responsibilities and delay a return to sustainable growth and full employment in our economy.

"Our obligations are clear. We must demonstrate that we are bringing sustainability to our public finances. We must stabilise our debt to GDP ratio over the period of the Plan. And we must set out our strategy for returning our economy to growth," a Government statement concluded.

Following briefing at the Department of Finance this evening, Fine Gael's Finance Spokesman Michael Noonan said he understood the breakdown over each of the four Budgets will be announced during the third week of November.

The Government's statement came after the Cabinet held a day-long session to discuss the Budget and the four-year economic plan.

Ministers met for over three hours at Farmleigh House in the Phoenix Park last night.

The meetings were ahead of this week's Dáil debate on the economy.

The Government has warned that in addition to increased taxes, there will be spending cuts in health, social welfare and education.


Minister for Finance Brian Lenihan confirmed last night that the first installment of the four-year plan would have to be the biggest.

“The Government accepts that there must be significant frontloading in relation to this figure in the budget this year . . . that first instalment will have to frontload a sizeable part of that adjustment,” he told reporters.

The Government's is targeting an average growth rate of 2.75% for the next four years. If growth is lower, the fiscal adjustment will be even bigger than €15bn. However, a stronger international recovery would ease the pressure.

Reducing jobs numbers and increasing local demand is key to the domestic recovery.

IBEC chief economist Fergal O'Brien said:"It is essential that we don't stunt our fledgling economic recovery by overtaxing the country. The bulk of the adjustment must come in the form of current expenditure reductions.

"The Irish economy remains in the international spotlight and it is vital that we take the steps necessary to restore confidence. We must demonstrate our ability to solve our own problems and unfortunately this means tough decisions."

Related Articles
Related Articles

© Copyright 2010 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March