Government must find €4.5bn of cuts in December's budget [tribune.ie]
- Published: 03 October 2010
Savings of up to €4.5bn in December's budget and total "adjustments" in excess of €10bn over the next four years will have to be found by the government as part of its revised fiscal plan currently being drawn up to rein in Ireland's massive deficit.
This level of cutbacks will be required to reassure the financial markets and the EU that Ireland is serious about getting its budget deficit down to manageable levels by 2014, informed sources told the Sunday Tribune.
While the new four-year plan is far from finalised, it will include:
* €4bn-€4.5bn in savings for 2011 – up from the earlier target of €3bn – and additional savings of at least €6bn-€7bn in the next three budgets.
* The introduction of a property tax – with the possibility of a levy being introduced in the December budget not being ruled out – and water charges.
* Moves to rein in the public-sector pay and pensions bill by cutting staff numbers and ending the system linking public sector pension increases to pay rises.
Full Story: www.tribune.ie
