Minister for Finance Brian Cowen has reiterated that implementation of the National Development Plan, rather than tax cuts, will have the first call on resources if Fianna Fáil is returned to office.
"Continued growth will rely on maintaining prudent economic and fiscal policies and on retaining a competitive and flexible economy," Mr Cowen said yesterday following publication of the latest set of Government accounts.
"That is why the National Development Plan will have first call on resources and will be implemented in full, on time and on budget if we are re-elected to office."
The Exchequer returns for the first three months of the year show that tax revenues are far less buoyant than this time last year, but the Government remains on target to meet its Budget day projection of an overall Government surplus of over €2.2 billion.
Fine Gael finance spokesman Richard Bruton said that there was a discord between what the Minister was saying and the scale of the promises made by the Taoiseach in his ardfheis speech 10 days ago.
In his speech Bertie Ahern committed himself to substantial tax and PRSI cuts if re-elected this summer, only days after several of his Ministers, including the Minister for Social and Family Affairs Séamus Brennan had said Fianna Fáil would avoid "auction" politics.
"There is an element of going back to the Séamus Brennan line about safety first in order to protect economic gains in what the Minister is now saying. They are trying to run on both sides of the track at the one time," said Mr Bruton.
"Brian Cowen is emphasising the NDP as a tactic to get the debate away from the quality of public services. The Taoiseach knows they are not winning the debate on services which is why he tried to divert attention by making all those promises," he added.
Mr Cowen said the Exchequer figures confirmed that the public finances remained in a healthy position thanks to the prudent fiscal policies pursued by this Government.
"My department is forecasting a continuation of strong economic growth, with gross domestic product and gross national product both expected to rise by 5.3 per cent this year. This Government is working to ensure that our economy remains strong," the Minister said.
Income from tax and other sources exceeded expenditure by €1,861 million in the first three months of the year. However, this was nearly €560 million down on the figure for the same period last year.
Mr Cowen said that notwithstanding this, the figures confirmed that the public finances remained in a healthy position.
"Both tax revenues and expenditure are more or less where we expected them to be at this point in the year. These results, combined with recent CSO data, show that the Irish economy continues to perform well."
Tax receipts were up 10.2 per cent year-on-year to €11,846 million, despite lower-than-expected receipts from income tax, VAT and excise duty.
Property taxes, including stamp duty and capital gains, were some €81 million lower than expected in the first three months, with the fall-off attributed to the cooling property market.
However, stronger-than-expected corporation tax revenues compensated, bringing the overall taxation revenue figure in just ahead of target.
Pat McArdle, chief economist with Ulster Bank, warned that if corporation tax revenues did not remain strong throughout the year, the Government could miss its Budget day target of a €546 million Exchequer deficit, but an overall surplus of €2.3 billion.
Bloxham Stockbrokers economist Alan McQuaid said the lower-than-expected income tax receipts in the early part of 2007 did not reflect a weakening economy and said he expected growth to average more than 5 per cent this year.
"There is no doubt that the slowing housing market will impact negatively on stamp duties in the coming months, but the overall strength of the economy this year, boosted by €10 billion in maturing SSIA funds, should ensure that total tax receipts in 2007 will again be well ahead of official projections," Mr McQuaid said.