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Dáil Éireann debate -
Tuesday, 12 Nov 1991

Vol. 412 No. 5

Written Answers. - Government's Budgetary Targets.

Donal Carey

Question:

17 Mr. Carey asked the Minister for Finance the reason the review of the Programme for Government 1989-93 has softened the Government's budgetary targets; and if he will make a statement on the matter.

Contrary to the Deputy's view, there has been no softening of budgetary targets. On the contrary, the Government's commitment to these targets has been reaffirmed. I would draw the Deputy's attention to the text of the reviewed programme, which states:

in order to sustain economic growth and to increase employment, the Government's medium-term budget targets must be resolutely adhered to. There can be no deviation from the budget discipline which has been central to the economic progress of recent years. Continued reduction of the national debt ratio towards 100 per cent of GNP by 1993 is essential. To this end, the EBR will not exceed 1.5 per cent of GNP by 1993.

Consistent with that parameter, and notwithstanding the adverse effects on current revenue and expenditure of the unfavourable international economic climate in 1991 and 1992, the aim must remain of achieving broad balance, within the limit of 1 per cent of GNP, on the current budget by 1993.

This is a restatement of the objectives set out in theProgramme for Economic and Social Progress in relation to the debt/GNP ratio and the current budget, together with the setting of a specific target for the EBR in 1993. The targets represents in fact a firming of the budgetary objectives agreed in 1989. In the more difficult economic climate that has emerged, they reflect the Government's determination to adhere to strict fiscal disciplines underlying the Programme for Economic and Social Progress.
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