Gloomy outlook means further cuts

THE Government could be forced to make further spending cuts due to the gloomy economic outlook reported yesterday by the Department of Finance.

Inflation will be higher than predicted this year and economic growth will be lower than forecast in last December's budget, according to a department report.

At this stage, it is also expected that there will be a shortfall in tax receipts of 500 million. Yet Government spending was running out of control in the first seven months of the year up by over a fifth on 2001 and well in excess of budget allocations.