Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 105: To ask the Minister for Public Expenditure and Reform the policy measures he intends to put in place in tandem with the Department of Finance to tackle the competing budget components of significant expenditure cuts and the continuing decline in tax revenues arising from the current and previous Government's austerity programmes. [35358/11]

Brendan Howlin (Wexford, Labour)
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Firstly, I would point out to the Deputy that tax revenues in the period to end-October are significantly ahead of the corresponding period last year by approximately €2 billion or an increase of 8%.

As regards the composition of consolidation, the Medium-Term Fiscal Statement published on 4 November, set out the aggregate fiscal consolidation path on which the Government has decided, including the tax/spend mix over the period 2012 to 2015. Our approach balances the need to narrow the deficit with the need to support the emerging economic recovery. It is vital that the State continues to show the seriousness of its intent to tackle the deficit in the public finances. The adjustment required to reduce the deficit to below 3% of GDP over the four-year period to 2015 cannot be achieved by exclusive reliance on either tax increases or expenditure cuts. I am working closely with my colleague the Minister for Finance and indeed the whole of Government on these matters. We are guided by the lessons from our past as well as the experience of other countries. The specific measures to bring about the required adjustments are being considered by the Government and our decisions will be set out in detail in the first week of December.