We are just weeks away from what may be the hardest budget in the entire recovery from our economic collapse. The Taoiseach will be aware that the ex-IMF mission chief to Ireland, Professor Ashoka Mody, made a compelling case on "Prime Time" last night that the austerity drive should be relaxed, at least temporarily, to give the economy a boost in the arm.

The Deputy has responded.

The good news, as the Taoiseach will also know, is that according to the Government proposal to the European Commission last April, we are set to exceed the troika target for next year by €1.3 billion or €1.4 billion. The troika target in the memorandum of understanding, which is referenced in all of its quarterly reviews, is for the general Government deficit to be no more than 5.1% of GDP for 2014. The latest figures available to Members of the Dáil show that being exceeded by €1.3 billion or €1.4 billion. In 2012, the plan was to exceed it by €600 million or €700 million. That was updated by another €600 million or €700 million this year. As we all know, the key to our economic recovery is growth. It will drive job creation and, critically, it will help us to outgrow the huge national debts this country is facing. Therefore, I fully agree with the compelling case made by Professor Mody, which is that we should exceed the troika target for 2014 by several hundred million euro, but not by €1.4 billion. Perhaps we could exceed it by €300 million or €400 million, and use the €1 billion that is left to reinvest in economic growth. There are three parts to my question. When I spoke to people in preparation for Leaders' Questions, I was advised to ask the Taoiseach just one question, but I will take a leap of faith and ask a question with three parts.

The Deputy will not get an answer anyway.

Deputy Donnelly would want to do it quickly because he is over time.

It is a leap of faith.

I ask Deputies to cut out the speeches and ask some questions.

What about the rest of them when they were talking?

Deputy Donnelly will not get a straight answer anyway.

Does the Ceann Comhairle give them the same instruction?

First, does the Taoiseach agree that the proposal put to the European Commission in the stability programme update exceeds the 5.1% target by €1.3 billion or €1.4 billion? I ask that question so that we can have a baseline. Second, does the Taoiseach agree that this comes from a Fianna Fáil figure from 2010? It is the only place where I can find it.

They are good figures all right.

It is not in the memorandum of understanding and it is not in any of the quarterly reviews.

I would say the Deputy is relying on Fianna Fáil figures.

He will find the figures in the membership form.

Deputy O'Donovan is much better at the sums.

Third, does the Taoiseach agree that there is a compelling case to exceed the troika target, but to use approximately €1 billion for investment, at least for next year?

Hear, hear.

I have read Professor Mody's comments. Commentators are great. I understand the Deputy responded to him on a television programme. We are borrowing €1 billion a month. This cannot continue. We have to deal with it. We have set objectives in terms of having our deficit reduced. The full economic perspective of the Government will be set out in the budget. At this stage, neither the commentators nor the Government have at their disposal all the figures necessary to complete the Cabinet's responsibility in drafting the budget for 2014. I have no faith in Fianna Fáil figures for 2010.

I am surprised Deputy Donnelly does.

They were never very good at the mathematics in that sense.

The Government has followed them all.

No, not them all.

It has followed every one of them.

Imitation is the sincerest form of flattery.

The Opposition has the figures wrong again.

They are the figures the Government was given by Fianna Fáil.

Read the brief.

When the Minister for Finance spoke yesterday, he said clearly that the Government fully understands the challenges and difficulties being faced by so many people. When the full figures emerge from his area of responsibility and that of the Minister, Deputy Howlin, he will have to take account of the difficulties and concerns that many people face. Clearly, if moneys are available at the end of the presentation of all the figures, the Government will make a decision on the extent to which those moneys can be applied for job creation and getting people back to work. To be honest, as I stand here we do not have all of those figures. Tax returns are starting to come in. Other elements are needed by the Ministers, Deputies Noonan and Howlin, in terms of setting targets for departmental spending over the next 12 months and in terms of the revenue stream that will come in. Deputy Donnelly has spoken in response to Professor Mody's comments. Clearly, the fairest possible balance needs to be struck in the interests of moving our country through this budget, exiting the bailout in December, sending out an international signal that one country has emerged from this and getting back our economic independence. While there will be more challenges ahead, we will be able to move on to make our own decisions in the interests of our people.

All three parts answered - brilliant.

I thank the Taoiseach for his reply. I am concerned that if we do not look at investing a chunk of the amount by which it looks like we are going to exceed the troika target, we will follow the path of Japan, which had a huge economic collapse and a huge property collapse. It followed a very conservative route of paying down household debt and gradually closing the deficit. It did some of what needed to be done, but without the economic stimulus.

Japan stagnated for about 20 years. It is climbing out of it now but it stagnated for a very long time. My fear is that, based on our current trajectory of incremental improvement, which is obviously to be welcomed, we will still stagnate and the long-term unemployment rate will be several percentage points higher than it needs to be. In fairness to the Government and the previous Government, it has been shown categorically to investors and the markets over recent budgets that Ireland is capable of turning this around. I appreciate that the numbers are still moving, which makes it very difficult for us all, but does the Taoiseach agree that the figure presented by the Government in April to the European Commission, which is the only figure we can go on, exceeded the minimum troika requirement by €1.4 billion and, therefore, we can hope this presents the Government with a chance to still exceed the target and engage in serious economic stimulus around household debt and entrepreneurship for 2014?

I think everybody can agree that the future prospects for the country depend on growth and job creation to restore confidence and give people the opportunity to have a career and contribute to their local economy and, as a consequence, to the country. Deputy Donnelly is aware that, in the past 12 months, the Minister for Public Expenditure and Reform announced a €2.25 billion stimulus for issues like Grangegorman, the building of a range of schools under the public private partnership programme and major road developments in different parts of the country. These are all helpful in terms of construction jobs, employing people, providing infrastructure and spending capital where employment is involved.

Since the figures were submitted to the European Commission, there have been new movements in the area of growth and the tax position. Quarter 2 national accounts data show that domestic demand is stabilising and is moving to a modest recovery path. We are now clear that 3,000 jobs are being created every month in the private sector, which is welcome. We are happy to note the reduction in the unemployment figures, from 15.1% last year to 13.4% in August. We are happy to see 14 consecutive months of a reduction in the live register, and every 10,000 people who come off it represent a saving of €90 million. Personal consumption in quarter 2 is up by 0.7% on the previous quarter. The construction sector started to expand again following growth in quarter 1. Investment in machinery and equipment also grew. These are signs of confidence. Of course, it is not where we want be. The latest data over the summer show positive retail sales, with a year-on-year increase of 1.3% in July. It is not a case of domestic demand continuing to contract.

When the full picture emerges of the tax stream, growth figures and projections for the period ahead, the Government will want to meet its targets and will make its decision as to how to continue to build on the platform of confidence that is rising in different sectors on the basis of whatever flexibility is available. It is clear that too many people are still unemployed and that other countries have an impact in terms of their capacity to purchase what we produce. Europe as a unit also needs to make a range of decisions. When all the figures become available, the Government will tease this out and make its decision collectively in the best interests of the people and our economy.