1987-1988Ray MacSharry cuts spending sharply in two budget packages designed to put the public finances back on track. Exchequer borrowing starts to fall back sharply from a peak of over 12 per cent of GNP which he inherited to £1.786 billion (9.4 per cent) in his first year, and interest rates fall.
1988-1991Albert Reynolds continues catious management of the public finances but is also able to start cutting tax rates - which were 58 per cent and 35 per cent - and introduce other tax reliefs in more generous packages in 1990 and 1991. By the end of his tenure, the Exchequer Borrowing Requirement was down to $499 million (2 per cent of GNP).
1991-1994Bertie Ahern also offers relief to the general body of taxpayers in his first package, through widening tax bands. He also cracks down on tax loopholes. But in tighter times in 1993 he introduces a much criticised 1 per cent levy on incomes. The levy goes as part of a more generous 1994 package. In that, his final budget, the Exchequer Borrowing Requirement stands at £672 million (2.2 per cent of GNP).
1994-1997Ruari Quinn introduces significant tax and PRSI concessions aimed at the lower paid in two years, which also shows strong growth leading to a rapid improvement in the public finances. The Exchequer Borrowing Requirement in his final budget is $637 million (1.6 per cent of GNP). Business also gains from the packages as tax and PRSI fall.
1997 -Charlie Mccreevy introduces significant tax cuts, aimed primarily at the higher paid, along with increases in social welfare at over the rate of inflation. He confounds expectations of a budget surplus with an Exchequer Borrowing Requirement of $89 million or 0.7 per cent of GNP. Corporation tax is also significantly reduced as is capital gains tax.