Economy on track to meet deficit target but IMF urges no budget cuts

The economy remains on track to meet its budget deficit target this year, according to the latest exchequer figures for the first four months of the year, but the IMF has urged the Government not to introduce budget cuts and stick to the planned €2bn adjustment.

The exchequer deficit at the end of April was €4.8bn compared with €6.1bn for the same period last year.

“The main drivers behind this year-on-year improvement in the exchequer deficit are increased tax revenue, lower voted expenditure and a significant reduction in bank guarantee payments associated with the liquidation of IBRC,” the Government said in a statement.