Taoiseach Enda Kenny has said it is too early to say what tax and spending adjustments will be required in next October's budget to meet Government targets.
“You cannot answer the question now because you have no final view of the national accounts until later in the year,’’ he said.
Mr Kenny welcomed the input from the Irish Fiscal Advisory Council (IFAC) which has advised against adjustments of less than €2 billion. IFAC's strong recommendation was raised in the Dáil today by Independent TD Catherine Murphy.
“The Government’s fiscal adjustment plans are in line with the requirements of the new fiscal framework,’’ said Mr Kenny.
"I am advised by the Department of Finance that the Government is not going beyond the minimum requirements of that new fiscal framework…and I understand that the Department of Finance would specifically query the conclusion that the IFAC has reached.''
He added that it was the rules of the EU fiscal compact treaty that requires Ireland to attain the medium term objective of a structurally balanced budget by 2018. "Under the treaty, the European Commission sets out what is called the calendar of convergence and not the Irish authorities as suggested by the IFAC,'' he added.
Mr Kenny said the Government had an agreed economic plan setting out specific targets to have the deficit reduced below 3 per cent by 2015 and eliminated by 2018.
“And so by balancing the books by 2018…we no longer have to borrow to fund the day-to-day services provided by the State,’’ he added. “That would make Ireland obviously far more attractive for jobs and investment and keep our debt very much under control.’’
