Finance Minister hints at further budget cutbacks
Finance Minister Charlie McCreevy has hinted that his budget this December will contain more cutbacks in public spending.
In a speech to a construction conference in Dublin, Mr McCreevy said his budget would focus on cost-containment and boosting competitiveness.
"This year, spending has been limited to an increase of 7% and we have to continue on this path," he said. "Rolling back our tax reforms is not on. Lower taxation has been good for the economy and I intend to stick to that path."
The minister also said that he was opposed to large-scale borrowing to fund vital infrastructure projects, but said infrastructural investment remained one of his priorities.
"“While I support sensible borrowing, I am not a believer in excessive borrowing, as that will lead inevitably to higher taxation and undermine the economy," he said.
Speaking about the ESRI’s evaluation of the National Development Plan, Mr McCreevy said the report had raised serious issues about delays and cost overruns in infrastructure projects. He said these overruns were unacceptable and called on construction firms to provide better value for money to the State.
