Two weeks ago, measures were proposed that would raise €6bn in new taxation by 2015. This post follows up by examining Ireland’s public spending. Like two weeks ago, it points out those areas where Ireland sticks out in international comparisons. It focuses on five areas of public expenditure – in particular capital investment and health-care – which if trimmed back to EU averages would save close to €10bn by 2015.
This post outlines a scenario for Ireland’s government finances out to 2015. Even with aggressive productivity targets for areas of current expenditure, the deficit is likely to be above 4% of GDP by 2015, while the national debt will again be larger than national income and take up one-fifth of all tax revenues. Grounds for optimism – and pessimism – and alternative scenarios are also explored.
This post outlines some key considerations in Ireland’s Budget 2010, including the scale of the challenge the government faces, the imperative to cut spending, the growing role of national debt, capital expenditure and over-reliance on income taxes. It also makes some recommendations for measures in relation to tax credits, property tax and VAT.
