Fine Gael’s finance spokesman Michael Noonan has described as "prudent" the deficit/GDP ratio target of 9.5 per cent outlined in the economic and budgetary outlook published today.
However, Mr Noonan said his party had no confidence that the Government had a plan to protect jobs and public services from the €6 billion adjustment being planned.
“Fianna Fáil and the Greens don’t get it. The country needs hope, optimism and the confidence that only a jobs and growth economic plan in parallel with the fiscal correction would deliver,” Mr Noonan said.
Mr Noonan also said he was concerned that the Government was taking an interest holiday on the promissory note arrangement used to fund the bank bailout.
This was likely to create problems for the next government, he said.
Joan Burton, the Labour Party finance spokeswoman, said the Government’s plan to inflict a €6 billion hit on the economy in the budget posed an "unacceptable risk to jobs and growth."
"The Government's latest manoeuvre on the bank bailout is to take an 'interest holiday' on the IOUs they've given the banks until 2013, comfortably after the next general election. This adds about €400m to the cost of the bank bailout and leaves an appalling legacy to the next government and the people of Ireland," she said.
"While maintaining our support for the target of reducing the deficit to 3 per cent of GDP by 2014, the Labour party believes that this level of front-loading of the total adjustment is misguided, and excessively risky."
Sinn Féin's finance spokesman Arthur Morgan said the Government plan would cut spending, but not the deficit.
“Last year we were told a €7.5 billion adjustment would be made in the economy up to 2014, now it will be €15billion. We were told €3billion would be taken out in 2011, now we are told it will be €6 billion.”
Mr Morgan said the various solutions being proposed by the Government were exacerbating the situation, not improving it.