18-21C
A mostly dry and fine day is expected.

Find a...

Date Job Car Home












Kenny: Next budget will be Cabinet’s most challenging

The forthcoming budget will be the most difficult of the Government’s five-year term, Enda Kenny has predicted.

It comes amid mounting signs that there will be significant policy clashes between the Coalition partners in the budget negotiations. Fine Gael and Labour are already at odds over the possibility of including farmland in the means test for third-level student grants.

The potential need to increase PRSI could cause another rift, after a report yesterday suggested such a hike may be necessary because of a looming black hole in the social insurance fund. In addition, ministers continue to give personal views on budget issues, even though Mr Kenny has asked them not to do so.

Labour’s Joan Burton said “simply cutting everything” was not the solution and the Government must spend to breathe life into the economy.

Mr Kenny refused to respond specifically to Ms Burton’s argument, instead saying the Cabinet would decide the budget collectively.

“We should understand that there are no personal ministerial positions about budgetary decisions. The Government, when it sits down collectively, will deal with all the range of challenges that we face in the context of drafting the budget, which I think will be the most challenging of the lifetime of this Government.”

Mr Kenny made the comments following his address at Béal na mBláth to commemorate the 90th anniversary of the death of Michael Collins.

© Irish Examiner Ltd. All rights reserved

Home

More from the Irish Examiner