Martin Mansergh (Tipperary South, Fianna Fail)

In more difficult times we are making good use of the reserves and strength built up. There has been criticism from the benches opposite of the resort to very limited borrowing, less than 1% of GDP. Not a single commentator, as far as I am aware, shares the Fine Gael view on this subject. The AIB Global Treasury Economic Research review of the budget states:

The move to a budget deficit should not be viewed as a cause for concern given the marked slowdown in the pace of economic activity, sharp fall in property related tax receipts, the very low level of the national debt and the fact that there is a very large current budget surplus. Indeed, fiscal policy should be counter-cyclical and thus stimulatory, if at all possible, during an economic slowdown. Thus, we would not have favoured an overly restrictive budget today and are not bothered by the deficit target.

One will find the same remarks made by other economic consultancies.

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