Lenhian warns further cuts may be made in public spending

The Minister for Finance Brian Lenihan has warned that the further cuts in public spending will have to be made and has not rule out a further income tax increases over the next two years.

Speaking on RTE radio the Minister said that 10% of the state’s day today public spending currently needs to be borrowed. He said that is 10% of every salaries, medical services, welfare payments and education services.