FG fiscal plan is fully costed & realistic, Labour’s isn’t

Fine Gael Finance Spokesman Michael Noonan has accused Labour of using spurious growth projections which would make further income tax hikes almost inevitable.

“Fine Gael’s fiscal plan is fully costed and uses realistic forecasts for growth. We are facing up to the need for a €9 billion correction by 2014, without hiking income tax. Fine Gael’s Budget plan to reduce the deficit to below 3% of GDP by 2014 is based on the best estimates produced by the IMF, the Department of Finance and the ESRI.

“However, Labour is still refusing to face reality. Not only is Labour taking the easy option of a €6 billion correction, but its growth and inflation projections are totally unrealistic.

“Labour has just made up its own numbers for growth and inflation to camouflage the huge increase in borrowing that will be required by its unwillingness to cut costs in the running of government. Inevitably, when these dubious assumptions do not materialise, it will mean even more taxes from the Labour Party.”