Giveaway budget not right move - Noonan’s dilemma

FOR the first time in seven years, the Government has some real money to give away in the budget. The current indications are that it can afford to spend about €1.2bn, split on a 2:1 basis between spending increases and tax cuts.

Those expected to benefit most are pensioners and first-time home buyers. Mr Noonan has already outlined a strategy to the Cabinet that includes a reduction in the much-hated USC. Even though it is arguably our fairest tax, in that it requires everyone to make some contribution, no matter how small, it has become almost as toxic as the water charges. As a realist, Mr Noonan knows its political limitations.

Despite having so much to spend, Budget 2017 is likely to be his toughest to date. Tough on him, at least. That is mostly because of the motley make-up of the current administration, its daily dependence on the main opposition and the number of vociferous ‘spend, spend, spend’ campaigners in the Dáil.