Government Told More Than 2 Billion In Adjustments Needed In Budget

Government told more than 2 billion in adjustments needed in budget

Fianna Fáil has accused the government of "taking the public for fools" by signalling tax cuts in the next budget. It comes after a European Commission report warned Ministers against raising expectations ahead of Budget 2015 and said that more than 2 billion euro in adjustments would be needed. The EC says the government's economic forecasts have been "too optimistic" and there is "no room for manoeuvre". Fianna Fáil Finance Spokesperson Michael McGrath says the coalition has backed itself into a corner. "The govenrment really are taking people for fools - they're taking a lot on the one hand and they're promising that they'll five a little bit back on the other hand" he said. "But we haven't seen the colour of their money yet - the reality is that the government doesn't know itself whether or not there will be any scope in October's budget for income tax reductions" he added.