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THREE MONTHS after the Minister for Finance presented his budget, the question is: should the Government adjust its spending and revenue targets?

The Taoiseach has rejected the idea, saying a review now would be premature. Nevertheless, the exchequer returns for February highlight a worrying trend, with spending rising rapidly and tax revenues falling sharply. Receipts for January and February, which were 8 per cent lower than last year, fell €516 million below the tax target set for the first two months of this year. The revenue shortfall largely reflects a lower than anticipated yield from capital and indirect taxes. A reduction in capital gains tax and stamp duty receipts suggests the Department of Finance has underestimated the impact of a weaker economy and a declining housing market.