Bruton warns on interest payments

FINE GAEL has said within two years the majority of income tax will be needed to pay interest on the national debt if the Government does not change its budget strategy.

The party’s finance spokesman, Richard Bruton, said Finance Minister Brian Lenihan’s decision to borrow 10.75% of GDP this year and next delayed addressing structural problems in how the country raises money. Mr Bruton said this borrowing would happen at a time when it was most expensive and drawing attention to the potential costs was “critical”.

He cross-referenced the estimated borrowing, the rate of interest the Government can expect to be charged and the predicted income tax take.