Its gonna be an Early Budget-October 14th to be exact

Just received this via email:

Government Statement

The Government this morning reviewed the economic and fiscal situation.

After an unprecedented period, in economic terms, when Ireland caught up

with, and indeed surpassed, many of its fellow European nations, it is now

facing an unprecedented set of unfavourable international factors including

turbulence in global financial markets, faltering economic growth in the

major economies, exchange rate shifts and the sharp rise in commodity

prices. These conditions are placing the Irish economy under considerable

pressure. Domestically we are also faced with a contracting construction

sector which is suppressing economic growth rates and a rising cost base is

eroding Ireland’s competitiveness. In addition, the slowdown has resulted

in a rapid deterioration in the public finances and falling consumer

confidence.

The emerging scale of the economic and fiscal and environmental challenges

now facing the country require that the Government take the necessary

decisions to ensure stability in the public finances, while giving firm

support for those aspects of the economy which are continuing to perform

strongly, and ensuring that Ireland benefits as early and as fully as

possible from improved international economic conditions.

Accordingly, the Government have decided that the Minister for Finance will

present his Budget for 2009 on Tuesday, 14th October. This will reflect

the necessary prioritisation of expenditures in the light of expected tax

revenues. As such, it will give clarity and confidence to investors and

taxpayers alike, and provide a sound basis for economic recovery.

The Government are committed to giving clear leadership in the context of

the strategic priorities of the Programme for Government in order to boost

confidence in the underlying strength of the economy, to encourage faster

development in key sectors to protect the environment and to build

sustainable competitiveness in the economy as a whole. Accordingly, the

Government will prioritise those capital investments within the framework

of the National Development Plan and the Programme for Government which

most support those objectives.

Ministers are developing specific initiatives which would serve to advance

those objectives by encouraging investment and activity and deepening

Ireland’s competitiveness. Details of these initiatives will be announced

in the weeks and months ahead.

The combination of fiscal and economic policy decisions will set out a

comprehensive approach to ensuring that Ireland remains on course for

sustainable economic and social development in the context of the long-term

objectives agreed with the social partners in Towards 2016 and reflected in

the Programme for Government.

The preparation of specific policy measures, the Estimates process for 2009

and the taxation measures to be included in Budget 2009 are already well

advanced. They will now be accelerated and will take account of the

outcome of discussions with the social partners and with other key

stakeholders.

Commenting on the Government’s decision to bring forward the date of Budget

2009 from December to the 14th October 2008, the Minister for Finance, Mr.

Brian Lenihan, T.D. said:

“When we brought forward our savings initiative last July, I pointed out

that this initiative was a first step in our response to our current

economic difficulties. The Government also made it clear that additional

economies would be required in the event that the fiscal position

deteriorated further. Over the summer, we have been implementing our

savings package and monitoring the emerging economic position.

Weaker international conditions including slower growth and the impact of

the credit crisis, combined with the developments in the housing market in

Ireland, are having a major impact. The public finances are under

considerable pressure as a result and, based on the latest information

available, a tax shortfall of at least €5 billion for 2008 is likely at

this stage.

In the Budget, I will set out steps to stabilise and restore balance to the

public finances by amongst other things prioritising current and capital

public expenditure to reflect the changed realities.

Through sensible and balanced management of the economy, this Government

has ensured that the people of Ireland enjoy living standards that are

among the highest in Europe. The Government is moving to protect the gains

that our country has made by ensuring responsibility in the public

finances.

Taking decisive action now is critical to our future sustainable growth.

We are better placed than most economies to meet the challenges ahead with

our low debt rate, our educated and young workforce, and our low tax

environment for workers and business. We are also undertaking the largest

public investment programme in Europe. The Government will ensure that our

economy is in the best possible position to resume trend growth as soon as

international conditions improve”, concluded Minister Lenihan.

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