The Finance Minister is expected to get Cabinet approval in writing today for 2 billion euro in taxes and spending cuts in the Budget.
However, it’s understood the Department of Finance doesn’t believe the economy has improved enough to warrant any easing of fiscal policy yet.
The Stability Programme Update will be circulated by Minister Michael Noonan to his colleagues.
It’s expected to seek commitment to the 2 billion euro target for taxes and spending cuts in Budget 2015 in what the Minister hopes is the last round of heavy lifting for taxpayers.
That’s despite optimism from the ESRI which believes the Government could forego any new austerity measures and still meet its deficit targets.
However, it appears Minister Noonan doesn’t want to give his colleagues the impression there is any room for “slackening” yet.
That’s because his own Department believes that the economy will only expand by 2-point-1 per cent this year, far below the ESRI’s 2-point-6 per cent prediction.
