The government will be publishing a “stability programme update” this week, which will outline the state of the economy and will provide the basis for setting the Budgets for 2014 and 2015.
It will set out revenue and expenditure paths extending to 2016.
The April 2013 IMF review noted that ” Budget 2014 will provide a further opportunity to articulate structural reforms to underpin future fiscal consolidation while ensuring strong delivery of public services, especially in health, education and social protection...”
The 2014 Budget will be announced on October 15th this year instead of the first week in December.
The governemt origninally agreed with the IMF and ECB to make adjustments in the 2014 Budget of €3.1 Billion – but that was before all the jiggery pokery with the prommissory notes and IBRC liquidation. There is now possible scope for making smaller adjustments in Budget 2014 – and maybe a bit less of the “Austerity”.
Some Fine Gael TD’s have been hinting at income tax cuts. Labour seem to want more spent on things that will help stimulate the economy.
Another option is to carry on as planned with the €3.1 Billion adjustments – but hopefully reach the defecit target before 2016.
Whatever happens will need IMF/ECB approval anyway.