Noonan: Budget will be mix of spending cuts and tax increases

Finance Minister Michael Noonan has said people should know that the budget will be made up of a combination of spending cuts and tax increases.

Speaking this morning Minister Noonan said it is unrealistic to think a significant budget adjustment can be made without both.

It comes after the trade union think-tank, the Nevin Institute, suggested a €2bn adjustment can be made through mostly tax increases on the wealthy.

The Cabinet's inner circle, the Economic Management Council, met yesterday to begin talks on the budget - and those talks will continue with the rest of the Cabinet over the next two weeks.

Minister Noonan said there will be more spending cuts than tax increases - but both are necessary.

"I think people should know that the adjustments in the budget will be a combinatin of expenditure cuts and tax increases," he said on his way into the Dáil.

"It's unrealistic for anybody to suggest that you can do it all by increasing taxes.

"It's equally unrealistic to suggest that it'll all be done with no tax increases.

"It'll be a mixture of the two to get us a significant adjustment."