The Department of Finance has revised projections for its finances today after citing better-than-expected tax revenues and has raised its forecast for growth.
According to the Department's 2004 Economic Review and Outlook, the government's projected borrowing requirement has fallen to €1.8 billion from the December budget forecast of €2.8 billion and slightly revised from a July ministry forecast of €1.7 billion.
The Minister for Finance, Mr McCreevy, put the expected deficit at 0.4 per cent of GDP, compared to the previous estimate of 1.1 per cent.
The Minister revised his 2004 forecasts for gross domestic product growth to 4.7 per cent from his previous forecast of 3.3 per cent and for gross national product growth to 4.2 per cent from 3 per cent. He forecast inflation at an average of 2.2 per cent after 3.5 per cent last year.
Commenting on the outlook, Mr McCreevy noted the increased momentum in the international economy, which should serve to support economic growth in Ireland.
He also welcomed the continued moderation in the rate of inflation.
Mr McCreevy pointed out that if the Irish economy is to grow in accordance with its potential, it is essential public finances are managed in a "prudent and responsible manner".
The Minister cautioned that regaining competitiveness is also a key priority if Ireland is to safeguards its economic success.