Gormley rules out increase in borrowing target

Government ministers have been ordered to make millions of euro worth of cuts in their departments ahead of next month’s emergency Budget, it was claimed today.

However Green Party leader John Gormley denied that the Cabinet had decided that €6bn in extra revenue was needed to correct the public finances.

“It is wrong at this stage to speculate because if you give out a figure people are out with their calculators and looking at the various implications,” the Environment Minister said.

He added: “We need to understand that this is a very grave situation.

“Each minister needs to go back and look at the various headings and sub-headings.”

The religious lobby group CORI has called for the 9.5% borrowing target set out in January to be increased rather than imposing severe tax rises and spending cuts which could actually cause further economic damage.

However, Mr Gormley has insisted that the Government will not be changing its mind on the borrowing limit.

Agriculture Minister Brendan Smith yesterday claimed after a special Cabinet meeting on the April 7 Budget that the Government was looking at the €6bn figure, 30% higher than the speculated €4.5bn target.

However he later clarified his remarks and said no agreement had been made on any amount by the Government.

Mr Gormley said today that it was up to the Finance Minister to comment in more detail on Budgetary issues if he wished.

The Green TD said all Budgetary matters were confidential and that all speculation was unhelpful.

The Dáil will tomorrow begin a pre-Budget debate as it returns from its break for St Patrick’s Day.

Mr Gormley said: “The Budget must send a very clear signal that the Government is getting the public finances under control, that we will make the expenditure cuts – and undoubtedly some of those will be unpalatable – and also making necessary changes to the taxation system.

“The situation is grave and we have to make courageous decisions even if they are unpalatable and politically unpopular.”

Mr Gormley was speaking at the launch of Senator Deirdre de Burca’s election campaign for the European Parliament.

Communications Minister Eamon Ryan said: “I don’t think anybody should obsess with any one figure.”

He added: “There is a balance to be struck on April 7 that will instil confidence... in international markets that this country can and will manage its affairs.”