Govt coy on mini-budget plans

The Government today remained tight-lipped about the prospect of a mini-Budget in coming weeks to help reshuffle spending plans.

Gloomy half-year Exchequer figures yesterday showed a €1.5bn hole in finances which is expected to double by the end of 2008.

The Government will be forced to pull €500m from the budgets of all departments to stay within EU borrowing limits.

Tanaiste and Enterprise Minister Mary Coughlan today refused to reply to Opposition questions about whether a revised list of public spending estimates will be published to take account of the new financial situation.

Fine Gael leader Enda Kenny asked Ms Coughlan if it was true that the Government intends borrowing three times more than planned this year.

“Can I have advice from the Tanaiste so that we can have clarity,” he said.

“For which Departments will Supplementary Estimates be introduced?” he added.

Mr Kenny also asked if spending plans will be scrutinised by Oireachtas committees?

Tomorrow’s Live Register figures for the first six months of 2008 are expected to show another increase in dole queues.

Louth TD Fergus O’Dowd also queried if some Transport 21 projects would be postponed due to the tightened financial situation.

“This means major projects such as Metro North may be deferred or put on the long finger.

“The truth is that cutbacks and time delays are being plotted in the Department of the Taoiseach even while work in progress meetings on Transport 21 are being held with TDs.”