Growth forecasts too optimistic, warns FF

FIANNA Fáil has warned that the Government’s economic growth forecasts may be too optimistic and that harsher than planned cutbacks may be needed in the years ahead.

The warning came from party finance spokesman Michael McGrath yesterday as he launched Fianna Fáil’s pre-budget submission.

Fianna Fáil agrees with the Government’s plan to make €3.8 billion of spending cuts and tax hikes in this year’s budget in order to reduce the deficit to 8.6% of GDP as required by the EU/IMF bailout agreement.