Current budget deficit targets
Reynolds presses the Taoiseach to say whether the Government will meet its deficit targets and reduce the deficit from about 8 per cent to 5 per cent of GNP. The Taoiseach acknowledges a slight overshoot this year but says the Government aims to reduce the deficit substantially; the exchange broadens into arguments over inflation, mortgage costs and national debt.
Is the Taoiseach seriously suggesting that the targets set for the percentage of GNP in relation to the current budget deficit will be met in 1986 and 1987? Is he seriously telling the House that he will take the necessary action to bridge the gap from 8 per cent to 5 per cent? Is he giving the House an assurance that that will be the percentage of GNP?
Comment on this
I should like to tell the Deputy that in the current year the deficit will be slightly higher than was allowed for, for the reasons that there was some shortfall of revenue——
Comment on this
——and, to some degree, some increase in expenditure for, among other reasons, the public service pay point which Deputy Haughey raised. Despite that the Government will continue to reduce the current budget deficit having got it down by two-fifths by comparison with what Fianna Fáil left. It will be our objective to get it down by three-fifths by the time the next election comes.
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I should like to point out to the House that unless we make progress 20 lucky Members who drew questions in the ballot will have drawn non-runners.
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Seeing that the Taoiseach is such a magic man on figures will he tell the House what percentage he is aiming for? Is it 8, 7, 6 or 5 per cent according to his target? That is a most important question. The Taoiseach should take his pick and give us one of the figures or does he have any target left?
Comment on this
The Deputy is aware of the targets. The Deputy is perfectly numerate and is quite capable of seeing that our targets would involve reduction to a level which is only about 40 per cent of the deficit Fianna Fáil left us with.
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Seeing that the Taoiseach is not prepared to answer, and that we all know he is going to miss his targets, I should like to ask him if in the interests of reality and practicality he will give that document a decent burial? We will not quarrel where the service is held and we will all gladly attend its decent burial. The Taoiseach should not live in fantasy land any more. He either has figures or he does not.
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Will the Deputy join in celebrating the fact that interest rates and inflation have fallen faster than projected or is that something he would prefer not to have said to him and not to hear?
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Inflation in Europe is down to the lowest it has been in 15 years and that has had a major effect on our inflation rate and the Taoiseach knows that as well as I do.
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Will the Deputy accept that on the typical mortgage the share of income absorbed by repayments on the mortgage is less than half the share of income it was when he was in office?
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Our young people will be paying for the next 40 years for the Government's doubling of the national debt.