THE MINISTER FOR Expenditure and Reform Brendan Howlin has said that the envisaged tax increases and expenditure reductions of €2.1 billion are now “not necessary”.

Speaking on RTÉ’s Six One News, he said the parameters they had laid to get to a borrowing deficit of below 3% for next year envisaged they would have to make tax increases and expenditure reductions of €2.1 billion.

“Now that won’t be necessary, that’s clear,” he said. “We know now we wont have to go as hard as expected,” added Howlin.

When asked about speculation of the easing of the upcoming budget, he said that he understood that people “want hope” and listed off many indicators that were positive.

However, Howlin clarified that there was a difference between not having to reduce expenditure and giving back money.

“We are not in the giving back phase,” he said.

“We don’t have to go further in cutting agenda, but we do want to give relief to people and we will do that in a  planned a way as we can,” Howlin added.

Read: Ministers don’t want to play “fast and loose” with Budget 2015>

Read: Guess who’s back?… Golan and Budget top the agenda, as Ministers return from break>