Ministers warn of tough Budget

Government ministers have been warning today that when the Minister for Finance Brian Lenihan unveils his first budget tomorrow, it will be a tough one, impacting on everyone.

Mr Lenihan is tasked with trying to stabilise the public finances in the face of extremely difficult economic conditions.

This morning, Transport Minister Noel Dempsey said the government would have to find money from somewhere to cover the cost of social welfare. He said that would mean tax increases for those who can afford it.

Tanaiste Mary Coughlan said that with a €12bn shortfall, there was no doubt it would be a difficult budget.

Minister for Social and Family Affairs Mary Hanafin said the government had done its best to be fair, but that everyone would have to play their part in getting the public finances back on track.