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Growth forecasts downgrade makes mini budget more likely

2 February, 2012 - by Pearse Doherty TD

Speaking in response to today’s Central Bank growth forecast downgrade Sinn Féin Finance spokesperson Pearse Doherty said that, “this makes a mini budget more likely” and “demonstrates once again that austerity not working”.

Deputy Doherty said:

“Today’s announcement that the Central Bank is downgrading its 2012 DGP growth forecasts by 1.3% makes a mini budget more likely.

“It also demonstrates once again that the government’s policies of austerity are not working.

“This is the sixth downgrade of Irish growth forecasts for 2012. Sinn Féin has consistently said that to follow the policies of cuts and tax increases on low and middle income earners will not lead to growth in our economy.

“Today’s figures represent a serious challenge to the government. The Minister for Finance is previously on the record in response to questions from me that a 1% in GDP reduction in as a rule of thumb would see a loss of €800 million in revenue from the state.

“This government has signed up to the Troika demands a deficit of 8.6% in 2012. Meeting this figure could result in the government being forced to introduce a mini budget to make the necessary cuts.

“This is an issue Sinn Fein raised with the Troika. Their response was that we could cross that bridge if and when we come to it.

“The government needs to realise that austerity does not work. It is not only hurting the economy but hurting ordinary people and families. The Centrals Bank’s projections of GNP, which is a better reflection of the Irish economy, are even worse suggesting that domestic growth will shrink by 0.7%. Clearly the Government’s policies are making the crisis worse.” ENDS

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