THE EXTENT of the budget cuts for next year will be revealed by the Government the week after the presidential election, Taoiseach Enda Kenny has announced.
Mr Kenny initially told the Dáil yesterday key budget figures would be published by the end of this month but he added: “Given the presidential election, the publication may well be delayed until the first few days in November.”
Later a spokesman pointed out that crucial figures for revenue and expenditure at the end of October would be required to inform key decisions to be made by the Government about the precise scale of the budget adjustment for next year.
The Government has committed itself to reducing the budget deficit to 8.6 per cent of gross domestic product (GDP) next year but Ministers have given different estimates about what this will mean in terms of the overall package of spending cuts and extra taxes.
Minister for Finance Michael Noonan has said the 8.6 per cent target will probably require an adjustment of more than €3.6 billion while Minister for Energy Pat Rabbitte has insisted that it should not exceed that figure.
The commitment made by the Taoiseach yesterday is that the medium-term budget plan detailing the proposed tax and spending policies for next year and the following three years will be published in the week after the election. It will include a breakdown between current and capital spending and will be presented to an Oireachtas committee for consideration.
On November 10th the Government will publish its capital spending plan which will include the conclusions of the ongoing capital spending review and will provide clarity on which projects are proceeding and which are being deferred or suspended.
A week later on November 17th the Government will announce the various public service reforms to improve value for money in public spending identified in the comprehensive spending review. It will include decisions on reducing the number of quangos as well as protecting frontline services.
On December 1st the detailed spending estimates for each Government department for 2012 will be published as well as the spending limits for each department until 2014.
“All the background comprehensive review of expenditure documents will be made available online for the information of the people,” said Mr Kenny.
On December 2nd, the White Paper on Receipts and Expenditure will be published and then on December 6th the budget for 2012, setting out the tax changes and overall exchequer position, will be unveiled by Mr Noonan.
“What I intend to do this year is very different to what has applied to any other budget to date. It will give all Deputies the opportunity to assess the process leading to the budget in order that they will be able to comment and provide views about alternatives,” said Mr Kenny.
“That has never been done in this House since the foundation of the State. It will apply now and every Deputy will have the opportunity to have thorough and comprehensive analysis of the scale of the challenge our country faces.”
