Brian Lenihan Jnr (Dublin West, Fianna Fail)

The table to which Deputy Bruton referred must be read in the context of the speech I delivered at the time of the supplementary budget. Then, I clearly stated the figure for taxation was an absolute maximum and the figure for expenditure reduction was an absolute minimum. I am sure Deputy Bruton would appreciate it is important that a Government keeps its options open in such a matter and reviews it having regard to developments on the general fiscal front.

It is clear from the decline in tax receipts that has continued to take place this year, albeit not on as spectacular basis as last year, that the scope for increased taxation in this year's budget is limited. I have made that clear in numerous public statements in recent months and that is also the general view of the Government. Of course, the precise composition of the balance between taxation and current and capital expenditure will finally be determined on budget day. What I have been doing is outlining the general character of the challenge facing the Government, which is to find the bulk of the expenditure savings on the expenditure side and to indicate clearly that the scope for taxation is limited.

As to the Deputy's second question about the capital budget, as he stated the indicative target stated in the Stability and Growth Pact was €750 million. Again, because of various decisions taken in the past year much of that target is readily achievable in the year ahead. It should be borne in mind that there has been a substantial reduction in tender prices in the interim.

See this speech in context