Current budget deficit target
Brennan challenged the Government’s target of reducing the current budget deficit to 5 per cent of GNP by 1987, arguing that the fall from 8 per cent would require £700 million in cuts or tax increases. Dukes reaffirmed that the target remained Government policy and said the budget statement on 29 January would set out part of what was needed; he disputed Brennan’s arithmetic.
asked the Minister for Finance if it is still Government policy to reduce the current budget deficit to 5 per cent of GNP by 1987 as stated in Building on Reality 1985-1987.
Comment on this
If the Deputy will read some of the Official Reports going back over the years during Christmas holidays, he will find that is quite a common answer.
Comment on this
They are more readable than the answer that we had just got. Some of the answers should be Christmas reading for children, fairy tales.
Comment on this
Is the Minister serious about that reply, considering that the percentage given now for the current budget deficit is 8 per cent of GNP? Is the Minister telling this House today — because it is very important that this be strongly on the record — that between now and the end of 1987 he will get that down to 5 per cent? That is a 3 per cent cut in 18 months or so. As I pointed out on a previous question, that will cost him £700 million. Is that what he is promising the Irish nation in the next 18 months — cuts of £700 million?
Comment on this
Or tax rises of £700 million. I am trying to point out to the Minister that if that target sticks, then the actions are quite obvious and I want to know what he is going to do about it.
Comment on this
If the Deputy keeps on getting in a lather like that, he will have to go back to the bubble bath again.
Comment on this
The answer to the question, Sir, is that it is Government policy to reduce the current budget deficit to 5 per cent of GNP by 1987. The Deputy will have the opportunity to see part of what is required to do that on 29 January next, when I shall give the budget statement in the House.
Comment on this
The number of taxpayers is down, the tax yield is down, expenditure is up and in that context how is the Minister going to get the £700 million which is necessary? He will not do that in one, two or ten budgets. It is quite clear that he will have to abandon that target or subject the taxpayers——