Written answers

Thursday, 17 June 2010

5:00 pm

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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Question 33: To ask the Minister for Finance the proportion of the €3 billion budget adjustment for 2011 that he plans to be accounted for by revenue raising measures; and the proportion by cuts in current spending; and if he will make a statement on the matter. [25631/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government has a multi-annual plan to restore order to the public finances by reducing the General Government deficit to below 3 per cent of GDP by 2014. Budget 2010 was the latest phase in that plan, delivering corrective measures totalling €4 billion, the majority of which were on the spending side. The end-May Exchequer Returns are broadly in line with our budgetary targets and the Budget targets for the year as a whole remain valid. My Department will assess the position further in light of the end-June Exchequer Returns.

The Government's budget strategy has been welcomed, by the European Commission amongst others, and has earned Ireland significant credibility, something of immense importance given developments internationally in recent weeks.

The Government's focus now is on securing the necessary adjustments for Budget 2011 and work is under way in that regard. In terms of the amount involved, €3 billion was set out in Budget 2010 as the necessary adjustment for 2011. €1 billion of that is to come from the capital expenditure side. The balance of €2 billion will come from the current side of the Budget and will be a mix of expenditure and taxation measures. The precise breakdown of this adjustment is a matter for ongoing determination in the context of my formulation of Budget 2011 and at this stage of the year I do not intend to comment on the specifics of the 2011 Budget.

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