Dick Spring
Question:59 Mr. Spring asked the Minister for Finance if he accepts the conclusions in the latest Central Bank report that the 1990 budget may have made too many concessions.
Written Answers. - Central Bank Report.
The Deputy is not placing a balanced construction on the Central Bank's latest report.
The report acknowledges that the budgeted Exchequer borrowing requirement for 1990, at £449 million, is broadly in line with what the markets had been expecting and that the budget measures should contribute to wage moderation and should serve to dampen inflation.
The package of tax and welfare measures in this year's budget was very carefully judged. These measures are necessary to promote competitiveness, non-inflationary growth and more jobs and to protect and improve the living standards of the most disadvantaged in our society. The budget does this while at the same time consolidating and improving upon last year's exceptionally rapid reduction in Exchequer borrowing and debt. I believe that the mix of policies contained in this year's budget was right, and this view is widely shared judging by the widespread favourable reaction to the budget.
I fully share the Central Bank's view about the need for a continuing disciplined approach to the public finances, especially in view of the level of accumulated debt. The Government are determined to maintain the momentum in improving the public finances. This is indicated clearly in the new medium-term objectives that I announced in the budget.