Next week's budget will include some measures sought by Fianna Fáil, the Dáil's biggest Opposition party, according to Minister for Public Expenditure and Reform Paschal Donohoe.
Cabinet members are still negotiating the final details of the tax and spending package which Mr Donohoe and Minister for Finance Michael Noonan will publish on Tuesday, October 11th.
“We have to work this budget in a new political context,” Mr Donohoe said. “Within the programme for government we have recognition of commitments that we have made to the main Opposition party.
“And in the budget that I’m working with everybody on delivering it will make progress on delivering all of those commitments, but we cannot deliver on all of those commitments in a single budget.”
The Minister was speaking ahead of addressing the Construction Industry Federation annual conference in Croke Park, Dublin, on Thursday.
Infrastructure
In his speech he confirmed the Government would be adding €5 billion to the €42 billion it has pledged to spend on infrastructure between next year and 2021-2022.
“In the first half of next year we will review the current capital spending plan and put in place a process to identify what we will do and when,” he said. “We are moving away from the pattern of projects following the money.”
The Minister said he had looked at what an economy the size of the Republic should be spending on roads, schools and other public projects, and had established that it should be about 3.8 per cent to 4 per cent of national income.
“We are currently at 3 per cent,” Mr Donohoe said.
He added that he planned to move steadily towards spending 4 per cent a year. The Minister stressed that the Government’s focus would be on delivering projects that are needed.
He also indicated that the State could tap the European Investment Bank for funds following the news last week that it intends to open a Dublin office this year.
Mr Donohoe said its presence here would help the State “understand how better to engage with the financial instruments that they have available”.
