The Government must take urgent steps to "restore equilibrium" to the Exchequer, the Fine Gael spokesman on finance, Mr Jim Mitchell, said.
The former leader of the Progressive Democrats, Mr Des O'Malley had rung alarm bells at the recent PD conference when he said the Government was on a trajectory of debt.
"What he had to say was in no way an exaggeration," said Mr Mitchell, adding that a sharp reduction in current expenditure must be made. Inflationary pressures had to be reduced by tackling retail and other prices more forcefully.
He urged continued wage restraint in the public and private sectors and enhanced competitiveness across the economy.
Already some financial commentators, he said, were predicting a deficit of €1 billion for 2002, €1.3 billion worse that the Minister for Finance's "own manipulated budget forecast that involved his raid on the Central Bank reserves and the social insurance fund. This in turn would increase the Minister's forecast deficits for 2003 and 2004."
Fine Gael, he said, would set out its projections for the next five years for expenditure and revenue. These had been cross-checked, he said, with the ESRI and the Department of Finance. The party's policy proposals would all be costed by the Department of Finance.
He added that Fine Gael would not plan to increase income, capital or corporate taxes in the five-year term of Government