Budget promises - A fine line

A recovering economy and a looming election meant that one-for-everyone-in-the-audience largesse would inevitably underpin October’s budget. It is after all as much about being re-elected as it is about balancing the books.

Yesterday’s declaration by Finance Minister Michael Noonan that he will cut the Universal Social Charge was not entirely unexpected. “I’m going to cut the Universal Social Charge by at least 1% and maybe a bit more,” he promised.

However, such a move will send a shiver down the spine of anyone who remembers how we got into such a dreadful mess in the first place. Extra money in the pocket is always welcome but if that payment is based on borrowings and jeopardises recovery and stability then we might be better off without it.

Despite the ever-strengthening recovery we borrow the bones of €10bn a year and far too many of our public services are inadequate. Mr Noonan intends to stimulate growth, get re-elected, and balance the books. Let us hope he has got his maths right because he’s walking a very fine line.