Cowen: Budget will be 'significantly' tougher than last year

The Taoiseach Brian Cowen has warned that December's Budget will have to be "significantly

tougher than last year", because of a lower-than-expected tax take and economic growth.

Speaking in Bodenstown at the annual Wolfe Tone Commemoration Mr Cowen welcomed the decision of the main opposition parties to agree the need to reduce the budget deficit to 3% by 2014.

However, he said agreeing targets is not the same as agreeing to take the actions to meet them.

In a stark warning about the scale of December's Budget, the Taoiseach said significant levels of of budgetary correction above those announced last in Budget 2010 would be required next year.

The main reason he said is that growth in the Irish economy is not expected to be as robust as previously forecast and tax revenues will be lower than expected.

He said: "It is simply wrong to argue that the banks are the source of all our problems, the bulk of the problems reflect the large gap between what is being spent and what is being taken in in taxes."