The planned adjustment package in next December’s budget may be more than the €3.6 billion already flagged, Minister for Finance Michael Noonan warned today.
Despite the easing of the EU-IMF bailout terms, Mr Noonan said the target was to bring the deficit down to 8.6 per cent of GDP next year, and that would require an adjustment of at least €3.6 billion.
However, he said he would not be tied down to the figure of €3.6 billion as there was a debate over whether it would be enough to achieve the 8.6 per cent target.
“The €3.6 billion is not the target, it’s the 8.6 per cent…and there’s a debate over whether the €3.6 billion gets us there or not.”
"We've said that €3.6 billion is the minimum but I've mentioned a figure of up to €4 billion. This far out from a budget, it's impossible to be precise," he told RTÉ's Morning Ireland programme.
Next year’s adjustment would be about two-thirds of this year’s adjustment, he added.
On household charges and water metering, Mr Noonan said the proposed charges were due to be discussed at Cabinet tomorrow.
“That particular piece of budgetary arithmetic is the responsibility of the Minister for Environment, and it hasn’t been discussed in Government yet,” he said.
Asked if he thought certain groups like the lower paid would be exempt from the charges, Mr Noonan said: “In general terms, if you’re bringing in something quite low overall, there is less political or economic need to make exceptions”.
