Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Deputy and I are not as far apart as he may think or wish people to believe. There will be three priorities in the budget coming before the House in two weeks. The first priority is that it be broadly balanced and that we do not repeat the mistakes of the past by ramping up spending and slashing taxes when the economy is strong and doing well. We will reduce the deficit and our national debt will fall as a percentage of gross domestic product, GDP. The first principle is to be prudent.

The second priority is investment in public infrastructure and services. We will increase spending on public infrastructure and services by €3.4 billion next year at least. There will be a 25% increase in capital spending on new homes, healthcare facilities, schools, transport infrastructure and broadband. Anything more than that would probably drive up construction inflation and would not allow us to build any more.

The third priority is that there will be a tax and welfare package which will put money back in people's pockets, not just middle income tax payers but also pensioners and people on welfare. While we have not signed off or agreed on the budget as yet, I firmly hope that it will be the budget that finally reverses the cuts made to weekly welfare payments made by a Government in the past.

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