Minister describes Govt's Budget as 'prudent' refuting fiscal body's criticism

Minister describes Govt's Budget as 'prudent' refuting fiscal body's criticism

Minister Katherine Zappone has insisted that the Government are being "prudent" and are prepared for any future financial crash.

It comes as the Government budget watchdog the Irish Fiscal Advisory Council warned that the State is pumping up spending while failing to control healthcare spending when it should be planning for the “inevitable” hard times.

While Ms Zappone said it is "really important always to listen" to the Irish Fiscal Advisory Council she dismissed their claims that Budget 2019 is not prudent.

"The European Commission's judgement of our Budget is that it's fiscally compliant, secondly I supported [Finance] Minister [Paschal] Donohoe in a number of things that I think he has done in the establishment of the rainy day fund, spending of money but spending it in a way that I think is focused on capital investment which effectively helps us with any of the issues in relation to the overheating of the economy," the Children's Minister said.

"So there is significant money spent that way and we are balancing the budget, we are reducing the deficit, we have identified that any additional windfalls, particularly in corporation tax, are going to be used to continue to reduce the deficit."

Ms Zappone added: "I think we have been prudent, I do think that we have been prudent, I do appreciate that there is another view being presented to us."

She said she is confident that the decisions made in Budget 2019 "establish the foundation" to prepare for any future economic downturn.

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