The economic forecasts underpinning Budget 2013 were consistent with the expenditure consolidation set out on Budget day and included provisions for savings through a reduction in the public service pay bill of €300m in 2013 and an overall reduction of €1bn by 2015. These forecasts were updated at the end of last month for the Irish Stability Programme – April 2013 Update. They continue to reflect the consolidation envelope laid out at Budget time as well as the outturn for 2012 as estimated by the CSO. As set out in the forecasts, the government consumption component of GDP is set to decline in every year to 2015, consistent with policy-related objectives of reducing the public sector pay bill.