MINISTER FOR FINANCE Michael Noonan is due to deliver the government’s f0ur-year economic plan later today.
The document will outline the coalition’s strategy for reducing the state’s deficit from 8.6 per cent of GDP next year to under 3 per cent by 2015 – the deadline Ireland agreed with the EU-IMF troika.
The forecast for economic growth is expected to be revised down, while plans for spending for the next few years will also be outlined.
According to the News at One on RTE Radio 1 this afternoon, the government will make a €3.8billion budget adjustment.
This will include a saving of €1.6million from increased tax measures; €2.2billion in spending cutbacks; and a saving of €750million through capital spending.
More information on the specific tax increases are expected to come in documents leading up to budget time.
The main targets of December’s budget are expected to be made clear in today’s figures. Spending cuts and tax increases in Budget 2012 are expected to be around €3.8 billion, according to Newstalk, of which €2.3 billion will be cut through reduced government expenditure and the remainder generated through taxation.