Noonan confirms €3.8bn Budget cuts and tax hikes

The Finance Minister Michael Noonan has confirmed that next month's Budget will include spending cuts and tax hikes of €3.8bn.

The Government has also revised downwards its forecast for economic growth for next year to 1.6% in light of a more negative outlook for the global economy, and forecast growth of 2.8% in each of the following three years.

The figures are outlined in the medium-term fiscal plan published this afternoon, which outline a correction of €12.4bn over the next four years to bring down the deficit to 2.9% by 2015.

Mr Noonan said the next four budgets need to bring a correction totalling €12.4bn, with €7.75bn of it in expenditure cuts and €4.65bn in taxes.

The most painful budget of the planned four will be announced next month, including cuts and tax hikes of €3.8bn.