Fiscal state in crisis management

THE emergency budget U-turn exposes the two great failings of this Government as it has grappled with the economic crisis engulfing it — the inability to get ahead of the financial curve or to treat voters like adults and tell the truth.

With the tax take in free-fall, a mini-budget had been inevitable to everyone except the Cabinet for some time, but ministers consistently set their faces against the idea and even now the Taoiseach refuses to respect the public and call the slash-and-tax statement at the end of this month exactly what it is — a mini-budget.

Just days after the Tánaiste assured us public finances were “under control” it is apparent the tax collapse is out of control — hence the need for emergency hikes in income tax, petrol and other duties, couple with another savage round of cuts.