GOVERNMENT RECORD:THE GOVERNMENT'S spending record over the last five years was strongly defended yesterday by the Minister for Transport, Noel Dempsey.
"I don't accept that the money we spent increasing old age pensions, or increasing the incomes of those on social welfare, or increasing the number of teachers, or nurses in the health system, I don't for a minute say that we shouldn't have spent that," said Mr Dempsey.
Taxes would have to increase "somewhat", he told Today FM. "That is something, obviously, that is going to have to happen."
The Government was facing "a very large gap" between spending and income. "This is going to be a very tough budget. There is no question, or doubt about that."
Borrowing for capital projects was acceptable, he said, but governments should generally avoid doing so for day-to-day spending, though that may not be possible this time.
During the Celtic Tiger years, he said, the Government had tried to put in place top-class infrastructure and it had the highest average spend of any country in the EU.
"We need to continue that, even in these straitened times."
