Government should do 'more than mimimum' to meet deficit target

Government should do 'more than mimimum' to meet deficit target

The Government is being warned that it should do "more than the minimum necessary" to meet a deficit target of 3% in 2015.

The Central Bank is recommending that the upcoming Budget should bring the deficit comfortably below that figure in order to guard against adverse shocks.

The authority’s quarterly bulletin has estimated GDP – which includes the profits of multinationals – will soar to 4.5% this year. Its previous outlook said 2.5%.

But it is urging caution for the first post-Troika Budget, saying it should be taken as a chance to enhance Ireland's creditworthiness, while an increase in revenues should be used to reduce debt.

It also says that the markets will be watching closely to ensure that Ireland "continues to build on the achievements of recent years".

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