Poor tax returns threaten further cuts

THE Government may be forced into another round of cutbacks this year as tax returns threaten to fall well below expectations.

Economists warned last night that Minister for Finance Charlie McCreevy could face a tax shortfall of €1 billion by the end of the year as it was announced Government finances are already €1.2bn in the red.

While the Government said the exchequer returns proved they were successfully managing the economy and keeping spending under control, opposition parties said the figures proved Mr McCreevy was economically incompetent and public services continued to be squeezed.