Surpluses on horizon as inflation falls

THE Government plans to run massive budget surpluses over the next three years as inflation is cut in half to just 2%.

However, job creation will slow dramatically.

A key budget document, the Stability Programme Update, reveals the economic background against which the 2007 budget is framed. It indicates the Government expects the economy to create 72,000 jobs in 2007, an increase of 3.5% — but the rate of increase in employment will fall to just 1.6% by 2009.