Dept of Finance to put brakes on spending

The Department of Finance is putting the brakes on the rise in Government spending.

However, next year's spend will still outpace inflation.

The tax take is being hit by the economic downturn especially the slowdown in the building sector.

This means the Government will have less money to spend on new plans if it is to meet its commitments on existing projects and increase welfare and other payments.

The Department of Finance, which holds the Government purse strings, has already circulated what is known as the budget strategy memo among the other departments telling them in effect to start tightening their belts.

The extent of that economising will become known when the Government publishes its book of estimates and announces its budget in winter.