Ireland’s cash correction doubles
(26 October 2010 – Europe) The Irish government has said that a 15 billion euro (A$21 billion) cash correction will be needed over the next four years to correct out-of-control public sector debt.
A statement released by the government said that "an overall correction of 15 billion euros is warranted in order to achieve the target adjustment of three percent of GDP by 2014."
In the 2010 budget, released last December, the government said that only 7.5 billion euros would be needed to correct public sector debt.
The government attributed the increase to poor prospects for growth both domestically and internationally.
'The key reasons for the significant increase from the figure announced in Budget 2010 are lower growth prospects both at home and abroad and higher debt interest costs,' the statement said.
'The size of the adjustment for 2011 and the distribution over the remaining years will be announced in the Four Year Plan.
'The Plan will contain targets for growth and strategies for the achievement of those targets,' the statement said.
Finance Minister Brian Lenihan said last week Ireland faced 'daunting' challenges in cutting the public sector deficit.
In the 2010 budget, released last December, the government said that only 7.5 billion euros would be needed to correct public sector debt.
The government attributed the increase to poor prospects for growth both domestically and internationally.
'The key reasons for the significant increase from the figure announced in Budget 2010 are lower growth prospects both at home and abroad and higher debt interest costs,' the statement said.
'The size of the adjustment for 2011 and the distribution over the remaining years will be announced in the Four Year Plan.
'The Plan will contain targets for growth and strategies for the achievement of those targets,' the statement said.
Finance Minister Brian Lenihan said last week Ireland faced 'daunting' challenges in cutting the public sector deficit.
Subscribe