asked the Minister for Finance if the Government have now abandoned the targets relating to the current budget deficit in Building on Reality 1985-87 and, if so, the alternative targets now proposed.
Ceisteanna—Questions. Oral Answers (Resumed). - Budget Deficit.
17.
The Government are at present assessing the budget outlook for 1986 in the context of the budgetary and economic objectives of the national plan, Building on Reality. Their specific proposals will be set out in the 1986 budget.
In so far as the Minister says that the Government have not abandoned the current budget deficit for 1985-87, will that represent a deficit in 1986 of, at best, £1,080 million? Will it represent a deficit in 1987 of 5 per cent of GNP in accordance with the national plan? The Taoiseach indicated yesterday that there was an overspill from this year of between £100 million and £150 million. Does the Minister accept that the Government would require at least — and this is being kind to them — £700 million to achieve anything like the target for 1986 which Building on Reality projects? Would the Minister also indicate how he proposes to find a figure of that order in 1986 to keep in line with those projections?
This is a priority question but it would have been appropriate to take several of these questions together so that we could have discussed them all in a logical way. As far as Deputy O'Kennedy's supplementary questions are concerned, his arithmetic is wrong. The Taoiseach did not say yesterday that there would be an overspill of £150 million on the current deficit. Deputy O'Kennedy seems to have misunderstood that point, although it is very clear. The answer to the rest of his questions will be made clear on 29 January.
It is time that we stopped playacting. The Minister has given cryptic answers and now we are told that the answers will be made clear on budget day. It is already evident that the Government's projections in this fairytale have been totally and utterly discredited. The EC Commission indicated that ——
A question, please, Deputy.
Does the Minister acknowledge that the EC Commission indicated that the minimum required to keep to the target he set at the beginning of this year would be a reduction of 1½ per cent of GNP in 1986? Will this target go the way of all other targets which have been abandoned by the Government?
By any standards the Deputy is making a speech.
What do these targets mean?
He has not finished playacting.
Are these targets to be abandoned or eliminated in four years? Is the Minister formally asserting that in 1986 he will reduce the deficit by 1½ per cent of GNP and also asserting that it will be 5 per cent in 1987? Is that a guaranteed commitment which the Minister will honour?
The Deputy's playacting has reached the point where I almost believe that he is as worked up about it as he says. As far as achievements of targets on budget deficits and Exchequer borrowing requirements are concerned, there can be no doubt of the Government's commitment and ability to do it. Over the past three years the over-run has been within 3 per cent of the budget target. In the periods of the last Fianna Fáil Governments the average over-run for their period of office was 56 per cent of the original target. Deputy O'Kennedy can playact and wave the book around but he knows, as well as I do, that we now have control over what happens to Government expenditure. He is now looking for a formal assurance or statement as to what the current budget deficit will be next year. He also wants answers today. He will hear them, clearly and unambiguously on 29 January. He can be quite sure that in 1986 we will be just as close to the target as we are this year.
I note from the Minister's reply that he is formally acknowledging that these targets are unrealisable and will not be realised——
Nothing of the kind. George Orwell where are you?