Cowen Hints At Budgetary Priorities

by Jason Gorringe, Tax-News.com, London

01 November 2004

Speaking at a recent business awards ceremony, new Irish Finance Minister Brian Cowen outlined his priorities for the forthcoming budget, ruling out a spending bonanza despite the apparent good health of the Republic's economy.

Although he suggested that areas such as social welfare and health may find themselves benefiting from increased public spending, he warned against "unrealistically high expectations" in this regard.

In addition to ensuring value for money in relation to government expenditure, Mr Cowen told the Dublin audience that capital investment is likely to be maintained at a high level in order "to accelerate the provision of much needed infrastructural development".

He went on to announce that although tax revenue is higher than expected:

"A significant proportion of the higher revenue seen over recent months results from the work of the Revenue Commissioners in pursuing bogus non-resident account holders and closing offshore tax shelters. This revenue is once-off and will not be available to finance an expansion of public expenditure programmes on an ongoing basis."

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