The Government had to borrow €1.7 billion in the first four months of the year to balance its books, Fine Gael said last night as it marked the anniversary of the Government's first year in office.
"The cutbacks at the end of last year were needed because of the pre-election splurge that the coalition embarked on in order to buy the election of May 2002. Spending in the 12 months to May 2002 increased by 27 per cent," the party said.
In a detailed assessment of the Government, entitled "What They Didn't Tell You", Fine Gael said it had failed to cut taxes and had fuelled inflation by introducing stealth taxes and charges.
The Government "failed to mention" last autumn's €36 million cut in the Department of Education's budget, including a €6 million cut in the programme to cut the number of students quitting school early.
It had also omitted a mention of "the huge 70 per cent increase" in registration fees for third-level students, which were increased after the election by the Minister for Education, Mr Dempsey, from €396 to €670, Fine Gael said.
Fianna Fáil and the Progressive Democrats had promised to equip the Defence Forces "to meet peace-time challenges at home and abroad", though it subsequently cancelled a contract to buy medium-range Sikorsky helicopters for the Air Corps.
"They said, 'We will ensure that every school building attains set modern standards'. But they don't mention that the commitments given to individual schools before the last election were not worth the paper they were written on," Fine Gael said.
The Government had promised extra money for research and new buildings for college and universities: "But they don't mention the 24 per cent cut in capital funding for universities and 33 per cent for institutes of technology," Fine Gael said.
Meanwhile, it had promised "to complete our major expansion of our overseas development aid programme".
"There is no mention of the €32 million cut in aid for 2003," the party said.
"Total voted spending was up 8 per cent on last year, highlighting the Government's inability to balance the books. However, while spending was up, capital spending - which yields a long-term return to the State through improved infrastructure - was down 12 per cent.
"Two years ago, the Minister for Finance, Mr McCreevy, enjoyed a surplus of €4.8 billion. Between 2000 and 2002, public sector spending ballooned by 50 per cent. Despite cuts, the Minister has predicted that the country will be €3 billion in the red for 2003."
Just 1.5 per cent extra is being spent on public services, once wage rises are excluded, while workers will pay an extra €300 million in taxes because the Minister did not index tax bands in the last Budget.
Meanwhile, unemployment figures stand at their highest for three years, Fine Gael said.
The leader of the Labour Party, Mr Pat Rabbitte, will today publish a 40-page assessment of the Government's first year in office.