Budget to pour cash into schools and roads

Schools and roads are expected to be the main beneficiaries in today’s Budget.

While cigarettes, alcohol and petrol may face small tax hikes, Finance Minister Charlie McCreevy is expected to use the increase in revenue to fund long-term spending priorities.

Five-year programmes were understood to have been agreed with several Government departments, with €1bn expected to be spent on upgrading primary schools in that period.

The Government is hoping for a positive public response to massive investment in the country’s roads network, amounting to around €1.2bn per annum over five years.

It has faced stinging criticism from opposition parties after proposed cuts in social welfare spending were included in the pre-budget Book of Estimates last month.

Members of Fianna Fáil have also been angered by proposed cuts in the Community Employment Scheme.

But the minister said the €60m needed to restore 5,000 places to the scheme was not available.

The Budget was also expected to include substantial investment in other key areas, including health and the environment.

However, Mr McCreevy was expected to commit himself to keeping public spending at about 5% of national output each year.