The Finance Minister is expected to get Cabinet approval in writing today for €2 billion in taxes and spending cuts in the Budget.
It comes days after the ESRI said the Government could meet its deficit targets without any new austerity measures.
However, it’s understood the Department of Finance doesn’t believe the economy has improved enough to warrant any easing of fiscal policy yet.
The Stability Programme Update will be circulated by Minister Michael Noonan to his colleagues at this morning’s meeting here at Government Buildings.
It’s expected to seek commitment to the €2 billion target for taxes and spending cuts in Budget 2015 – in what the Minister hopes is the last round of heavy lifting for taxpayers.
That’s despite optimism from the ESRI. It said the Government could forego any new austerity measures and still meet its deficit targets.
However, it appears Minister Noonan doesn’t want to give his colleagues the impression there is any room for “slackening” yet.
That’s because his own Department believes that the economy will only expand by 2.1% this year – below the ESRI’s 2.6% per cent prediction.
