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Government budget to be cut by €15bn by 2014

  • 26-10-2010 8:09pm
    #1
    oppenheimer1
    Closed Accounts Posts: 6,084 ✭✭✭


    With the cuts to be frontloaded. Figures are based on projections of growth in the economy of 2.75%

    Somehow I've a feeling that taking so much money out of the economy may stifle growth but the government are between a rock and a hard place. Cut too deeply and kill off any possible recovery. Fail to cut enough and face the wrath of the markets.


    Today was truly a bleak day for the country. The only positive from the day was the fact that the opposition (particularly FG) seem to be getting on board with the necessary actions that need to be taken and refrained generally from making political capital.

    So what do frontloaded budget cuts mean? What do people think is going to go by the wayside? I expect all capital projects to be suspended, and both Metro and interconnector halted until 2015. By frontloading the cuts it appears that the government have given up on ever being elected again so I think they will go after the pensioners this time and make them contribute too, perhaps by levying a tax and cutting back. Social welfare will be hit in addition there will be an increase in the registration fee for universities as their subvention will be cut. The possibility of capped fees returning for next September seems likely. Abolition of a range of tax breaks for the wealthy in addition to ward and hospital closures. The sale of assets like the ESB, Aer Lingus and the DAA.

    My big question is will Croke Park survive?


Comments

  • #2
    whatawaster
    Registered Users, Registered Users 2 Posts: 12,910 ✭✭✭✭whatawaster


    I think we're heading for at least a decade of stagantion, no matter what course the government takes at this stage.

    Extreme measures need to be brought in to encourage job creation and to improve our competitiveness


  • #3
    cavedave
    Registered Users, Registered Users 2 Posts: 2,164 ✭✭✭cavedave


    The multiplier in Ireland seems to be between .5 and 1.

    So if the government increase taxes by 2 billion and reduce spending by 4 billion. Which is roughly the 1:2 ratio and the 6 billionish that needs to be not lost this year.

    This would mean that the economy would contract by about 10 billion which is a substantial chunk of our GNP


  • #4
    unit 1
    Registered Users, Registered Users 2 Posts: 549 ✭✭✭unit 1


    FF have finally suceeded where no one thought they would. They have finally deflected the root cause of our problems (pouring billions into their mates banks) onto our deficit and saddled the nation with a scandalous burden, just in time to ride off into the sunset of oppositon who they will blambe for this mess in the ge after they are turfed out:mad:


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