Brendan Howlin (Wexford, Labour)

The Government's budgetary strategy is not one of austerity. On the contrary, we are borrowing significant sums of money to sustain the State and to protect the living standards of its citizens. We have extended the time available to the State to reach its 3% deficit target from that originally agreed with the troika. That means we are still borrowing 3% of GDP and not paying our way even then.

I remind the Deputy that the State's day-to-day spending is currently financed through borrowing from the troika which is based on firm conditions relating to the public finances. These conditions are rigorously overseen and the troika team is in my Department and the Department of Finance right now. We are committed to achieving a deficit target of 7.5% next year.

The Government is aware of the concerns expressed in the Nevin report and has made clear its commitment to focus our limited resources on measures that offer the greatest potential for expansion and employment creation in the domestic economy. This approach was evident both in the jobs initiative launched last year and the jobs action plan launched earlier this year. I will bring forward promised proposals for a further stimulus in the coming weeks.

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