🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-Irish PM defends fiscal plan as tax revenue falls

Published 03/31/2009, 01:53 PM
Updated 03/31/2009, 01:56 PM
TGT
-

* Tax revenues keep falling into March

* PM defends fiscal strategy after S&P criticism

(Adds comments on fiscal reform)

DUBLIN, March 31 (Reuters) - The sharp fall in Ireland's tax receipts in January and February that prompted the holding of an emergency budget next week has continued into March, Prime Minister Brian Cowen said on Tuesday.

Cowen, who made the remarks ahead of detailed exchequer data due on Thursday, defended his determination to deal with the problem in the face of strong criticism of his policies from Standard & Poor's on Monday when it cut Ireland's credit rating.

S&P, which stripped Ireland of its prized 'AAA' rating, said it was concerned a credible long-term fiscal consolidation strategy would not emerge until after the next parliamentary election, which is due in 2012.

Cowen pointed to last October's emergency budget and the further fiscal tightening measures worth 2 billion euros ($2.67 billion) taken last month as evidence of his cabinet's determination to cut the deficit in the deepening recession. "The government has at every opportunity reacted in the face of the deteriorating financial situation," Cowen told parliament. "We'll continue to do that and will do so next week," he said.

Earlier on Tuesday, a Reuters poll showed economists expect the government to miss this year's budget deficit target of 9.5 percent of gross domestic product, despite plans to hike taxes and cut spending in April's mini-budget.

Economists expect a budget gap of 10.8 percent of GDP this year, which they said would reach 12.9 percent in the absence of the measures expected in the April mini-budget, the Reuters poll showed.

Cowen said last week he would aim to be "as close as possible" to a shortfall of 9.5 percent. (Reporting by Andras Gergely; Editing by Andy Bruce)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.