Brendan Howlin (Wexford, Labour)

The General Government deficit target for 2012, as set by the ECOFIN Council in December 2010, is 8.6% of GDP. The Government is fully aware of the importance of achieving this target in the context of the 2012 budget as well as the views of those who have called for a more ambitious deficit target. The Government is currently examining all options as regards the required consolidation in 2012, including the results of both the comprehensive review of expenditure and the capital review. In addition, both my Department and the Department of Finance are currently in the process of assessing what implications the latest budgetary and economic data might have for 2012 and beyond. Such assessment will, along with other data, inform Government in the context of its budgetary preparations over the coming months.

The next step in this process is to publish an estimate of the 2012 deficit and the level of budgetary adjustment required to meet our deficit reduction target. That will be done at the end of the month in the pre-budget outlook.

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