Spending cuts - Recession, depression

Earlier this year the Government announced that €4 billion in savings would have to be found in next month’s budget by spending cuts of €2.25bn and extra taxation to raise an addition €1.75bn.

Since then, however, the Government has indicated the bulk of the saving would have to come from spending cuts.

Taoiseach Brian Cowen indicated yesterday that the Government would be targeting €1.3bn in savings from public pay and pensions just as a start in a slimming down process in the public sector.