Posted on September 25, 2012 by Tom Healy
Tom Healy, Director NERI
Our research shows that Government has options this December. Instead of €3.5 billion in fiscal adjustment, we argue for €2.7 billion of which €2.3 billion are revenue measures aimed at high-income households. Aside from savings under the Croke Park agreement we do not see any value on grounds of fairness, macro-economic impact and budgetary savings in cutting yet further into education, health and social protection. Any savings from particular headings or sub-headings should be conserved and used to maintain and improve front-line services. We urgently need an investment stimulus starting with €500 million ‘off the books’ next year and a cancellation of a further cut in the public capital programme earmarked by Government for 2013. Our proposals which we refer to as Plan B would: - Leave the government deficit at the same level as planned and targeted by government - Employment 21,000 higher than under Plan A - Growth higher by 1.3% next year compared to baseline Department of Finance projections.Budget 2013 should be the first step in an alternative economic approach to change Ireland for the better.
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Categories: Government Spending • Jobs • Macroeconomics • Taxation