2013 budget may see cuts over the planned €3.5bn

The Government has signalled next year’s budget cuts could be higher than the €3.5bn planned.

The prospect of harsher cuts and more taxes in 2013 comes as CSO figures show half of households have cut back on groceries while a fifth missed bill payments.

In the latest agreement with the troika — required to release €5.8bn in loans — the Government inserted the word “at least” before the 2013 adjustment target of €3.5bn. It is the first time the Government has admitted that a bigger adjustment might be needed.