Minister for Finance Brian Lenihan has said that this afternoon’s Budget will not be easy for anyone, but that it will be fair.Mr Lenihan is to announce the details of the Budget, which is expected to impose extra taxes and spending cuts worth around €3.5bn.
The Cabinet will meet in Government Buildings this morning for a final discussion on the Budget, but at this stage the decisions have already been taken.
After ten sessions, Ministers hope they have a package that can start the recovery of the national finances and will commend itself to the public and the international markets.
Last night, Minister Lenihan said the tax base had declined dramatically and has to be repaired.
He said everyone will make some contribution, though those who have the most will pay the most.
Mr Lenihan is keenly aware that taking too much money out of the economy could create a deflationary spiral, while not taking enough may lead international markets to doubt the Government’s resolve.
The Budget is expected to set out a three- to four-year framework for restoring the public finances.
