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Sign up to The Irish Times Archive (1859 - 2008)My Account »

Wed 10 Oct 2008Mr Lenihan's first budget

BRIAN LENIHAN faced the greatest challenge to confront any finance minister since the foundation of the State in the introduction of his first budget yesterday.

He faced a recession at home, which could be of two years duration, with a deteriorating outlook abroad with the fallout from the financial and banking crisis. No wonder that, in the confluence of these unprecedented events, he recalled his father's advice to always look after what he called "the little people".

Apocalyptic forewarnings had the public braced for the worst. The tax increases ranged from old reliables to manifestly unfair levies while on the spending side hard choices were dodged. It is beyond comprehension that a minister for finance - in a crisis situation for public finances - would kick public service reform into the long grass. The benchmarking bonanza continues unchecked.

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