Government digests worrying economic statistics

The Taoiseach Bertie Ahern and his Government Ministers who are having their first cabinet meeting since the holidays will be digesting the most worrying economic statistics of recent years.

Last night it emerged that the Exchequer surplus is likely to be down by almost £1bn on the original forecast.

According to the figures, at the end of August the surplus of tax revenue over spending was £2.33bn.

That surplus is £1.56bn lower than the surplus at this time last year.

It could mean by budget time that the Finance Minister, Charlie McCreevy, could have about £1bn less than he hoped, sparking fears that social welfare and the health services will bear the brunt of the recession.

Minister McCreevy is under pressure to drop his planned reduction in the top rate of tax and to concentrate on passing the country’s wealth onto the lower paid and the unemployed.