Comment on the Budget from Brendan Burgess, founder of Askaboutmoney.com
During the Celtic Tiger years, we based our budgets on artificially inflated property and other tax receipts.
We are making the same mistake now – basing our budgets on artificially high taxes and artificially low interest rates.
The difference now is that we have €200 billion of borrowing which we have to pay interest on.
- the booming economy
- the artificially high Corporation Tax returns
- the artificially low interest rates
Minister Donohoe is budgeting for a budget deficit next year.
We will increase our borrowing next year because we are planning to spend more than we raise in taxation.
The country faces huge risks :
- When interest rates rise, the true cost of our €200 billion and growing national debt will hit home
- When Brexit happens, our exporters could be very hard hit
- Trump’s trading policy could hit our exporters and could even result in some of them returning to America
This was a missed opportunity to cut expenditure – in particular on social welfare.
We need a Minister for Finance who is not afraid to say “We can’t afford it.”
The result of this Budget is that we will be in deep financial trouble in a few years and we will need to be bailed out again.