Extra €400m in savings may be needed

The Government may need to find an extra €400m in budgetary savings this year, and €2.8bn between 2013 and 2015, in order to reach its short-term budget deficit targets, an economic think-tank has warned.

Launching its latest assessment report yesterday, the Irish Fiscal Advisory Council — set up last year to evaluate the Government’s budgetary and financial projections — said it is essential the 8.6% of GDP budget deficit target for this year is met, by any means necessary.

“Given the continuing fragile nature of Ireland’s creditworthiness, it’s important that — if necessary — measures be taken to ensure that the general government deficit target of 8.6% of GDP is adhered to,” according to the report.