‘No need for spending cuts or tax hikes to meet targets’

The Government need not make any spending cuts or increase taxes any further in this year’s budget to achieve its targets, according to Davy Stockbrokers.

In its monthly economic outlook, Davy’s stated that with exchequer returns already €1bn ahead of target in the first half of the year and GDP revised up to €174.8bn in 2013, the Government no longer requires the €2bn adjustment mooted in this year’s budget.

Commenting on the results, Davy’s chief economist, Conall Mac Coille said that the Government can afford to leave the economy do the work in reaching the deficit targets this year and next.