Martin Ferris (Kerry North, Sinn Fein)
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Question 66: To ask the Minister for Finance if he will pursue a different approach to preparing for budget 2010; and if he will include the Opposition parties in discussions regarding cuts to spending. [27282/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I have already outlined in my response to a Priority Question today, the broad parameters for Budget 2010 were set out in the Supplementary Budget which for the first time set out a multi-annual plan which will achieve a General Government deficit of 3% of GDP by end-2013. In terms of the next two years, the Supplementary Budget set out the indicative split between the necessary further expenditure and tax revenue adjustments required, amounting to up to €4 billion in 2010 and 2011. At the time I indicated that the expenditure targets were a minimum and the taxation targets were a maximum and I have since elaborated on this to indicate that the scope for further income tax increases is limited. This will mean that other measures that broaden the tax base and further improve the expenditure position are central to the ongoing fiscal consolidation process.

The Commission on Taxation, which is expected to complete its work shortly, and the Special Group on Public Service Numbers and Expenditure, which is due to report to me imminently, will have an important role to play in identifying measures that will achieve the required adjustments for 2010 and subsequent years, as set out in the Supplementary Budget.

The report of the Special Group will assist the Government to identify economies which can be made on the scale necessary to ensure that the public finances are returned to a sustainable path in the near future. The Special Group's conclusions will accordingly be considered on an ongoing basis in the context of preparing the allocation of expenditure for 2010.

In relation to the Commission on Taxation, its terms of reference are far reaching and broadly defined and allow for consideration of all aspects of the Irish taxation system. The work of the Commission will help establish the framework within which tax policy will be set for the next decade at least. I expect to receive the report of the Commission shortly and I will be bringing it to Government for consideration at that stage.

It is intended the Pre-Budget Outlook will be published in mid to late October, setting out the pre-budget position in more detail based on the latest available data. In this context, my Department will produce updated macroeconomic projections which will inform the decision making process for my December Budget. The Pre-Budget Outlook will assist the House by informing the debate in the run up to the presentation of the Budget. I will then set out the details of Budget 2010 in my address on Budget Day in early December and the Budget will also contain updates to the medium term economic and fiscal projections.

As the Deputy is aware there is ongoing engagement with both Houses of the Oireachtas, as well as the various Committees, in relation to economic and fiscal matters. I have no reason to believe that the situation will be any different in the lead-up to the presentation of Budget 2010.