Praise for Ireland's fiscal measures.

[dewdrop]

I usually listen to BBC radio 5 early morning business programme at 5.30. For past week or so it has mentioned Ireland as a role model in how to deal with deficiit prob lems. In fact Dan McLoughlin of Bank of Ireland was on the show this morning. What somewhat puzzles me is that notwithstanding the tax increases and wages cuts the Current Deficit for first three months of this year is over One Billion more than similar period last year.

 

[zztop]

Same man got great praise in JRoss book(not)

 

[Purple]

The Daily Telegraph was also positive about what we are doing.

 

[Caveat]

Sounds like a first from them - praise indeed!

 

[Taxi Driver]

Most international commentators seem to be focusing on the expenditure side of the Exchequer Accounts while ignoring the revenue side.

Exchequer expenditure is down on last year, following the reductions announced in the April and December Budgets. The problem is that tax revenue has fallen by even more. External commentators seem to have the mistaken belief that we have a stable base for our tax system. As we know this is not the case.

We may be able to offer lessons on spending cuts, but an inadequate tax system means our overall Exchequer position is deteriorating. As Dewdrop states our Current Budget Deficit is €1 billion or about 40% worse than it was last year.

Exchequer Balance stops getting worse
Fall in Tax Revenue eases slightly
Ireland and Greece: Spot the Difference

 

[Sunny]

Most international commentators seem to be focusing on the expenditure side of the Exchequer Accounts while ignoring the revenue side.

Exchequer expenditure is down on last year, following the reductions announced in the April and December Budgets. The problem is that tax revenue has fallen by even more. External commentators seem to have the mistaken belief that we have a stable base for our tax system. As we know this is not the case.

We may be able to offer lessons on spending cuts, but an inadequate tax system means our overall Exchequer position is deteriorating. As Dewdrop states our Current Budget Deficit is €1 billion or about 40% worse than it was last year.

Exchequer Balance stops getting worse
Fall in Tax Revenue eases slightly
Ireland and Greece: Spot the Difference

They concentrate on the expenditure side because that's the bit the Government has real control over. We are after suffering massive falls in GDP so of course the revenue side will be down. The markets know that revenues will improve as the economy improves but they need to see action on the spending side. And Ireland has done that better than almost anyone else so far. The Government was limited on what it could do with taxation because of the recession. Now that things have stabilised, they can work both sides of the balance sheet to reduce the structural deficit. Next budget will see tax rises and spending cuts.

 

[ronanlyons]

I usually listen to BBC radio 5 early morning business programme at 5.30. For past week or so it has mentioned Ireland as a role model in how to deal with deficiit prob lems. In fact Dan McLoughlin of Bank of Ireland was on the show this morning. What somewhat puzzles me is that notwithstanding the tax increases and wages cuts the Current Deficit for first three months of this year is over One Billion more than similar period last year.

The relevant comparison is not with where we were a year ago, but where we would have been had we not taken action - which takes us back to what action was taken - which is very impressive in an international context (from an investor point of view).