Budget 2012

The Cabinet will meet for the third time this week this morning for further deliberations on cuts in the forthcoming budget.
Ministers met for two hours yesterday morning to further advance a budget that Minister for Finance Michael Noonan has described as being made more difficult because all the “low-hanging fruit” had been picked in last year’s budget, which involved a €6 billion contraction.
Ministers will begin meeting this morning for what is expected to be a protracted meeting, focusing on two primary issues – social welfare and a jobs initiative. The Department of Social Protection will bear the brunt of departmental cuts, with an expected €700 million of adjustments.
Cabinet meetings next week will focus on how the Government will raise €1.6 billion in tax and duties.
Addressing an Ibec conference yesterday, Mr Noonan told delegates the Government’s targeted €3.8 billion of savings next year “may vary slightly” after the receipt of extra exchequer data.
The Government was again forced to dismiss claims by Opposition parties there are tensions or conflicts between both Coalition parties over the contents of next month’s budget.
As Ministers met yesterday for the second of three meetings to decide on the €3.8 billion adjustment required, Fianna Fáil, Sinn Féin and the United Left Alliance accused Ministers of widespread early leaks to soften the blow of the worst austerity measures and of kite-flying to see how palatable other measures were.
Since last weekend it has emerged the likely cuts in the budget include a €10 monthly cut in children’s benefit for each child, new prescription charges, closures of up to 42 community homes and a €50 annual charge to holders of medical cards.
In a number of attacks on the Government yesterday, primarily during a heated Leaders’ Questions, Fianna Fáil accused the Government of cynicism. Party leader Micheál Martin said the Cabinet was involved in a “deeply cynical exercise” of saying it has made no decisions while selectively leaking details of what might appear.
Socialist TD Joe Higgins accused the Taoiseach and his Ministers of “cynical kite-flying exercises” about possible cuts and manipulating the media and the public with “horror stories”.
However, a Government spokeswoman last night dismissed suggestions there was conflict among the Government parties or among Ministers about the budget. Discussions were ongoing, and many details of the budget had yet to be finalised, she said.