The Government's finances next year will be "even more difficult" than outlined in a Department of Finance memorandum in June, the Minister for Finance, Mr McCreevy has said.
Rejecting charges that he deceived voters, the Minister said tax revenues would be down by even more than the €500 million estimated by the Revenue Commissioners in the middle of the year.
In May, the Commissioners said receipts were down by €300 million. "Subsequent to May, that figure rose upwards to 500," he told journalists outside the Powerscourt Townhouse in Dublin.
He said it was "only fair to point out" that tax receipts in July and August were "somewhat weaker than we would like.
"The likelihood is . . . the certitude is that the shortfall will be somewhat greater than the figure announced at half-year.
"Going forward, it is quite likely that the budgetary position is going to be even more difficult than the budgetary position outlined in that memorandum," he declared.
Faced with deepening international economic gloom, and falling stockmarkets, the Minister said the country will have "to cut our cloth according to our means" over the next five years. "Ireland is the most dependent on the global economic condition. Therefore, we have to have budget policies that are in line with those new certain facts," he declared.
During Fianna Fáil's daily general election press conferences he said he had repeatedly emphasised that "sensible and sound economic policies" would be the Government's "mantra" over the next five years.
"The Fianna Fáil manifesto on its first page and a half in big, bold black print said that everything in this manifesto is predicated on continued economic growth, sound public finances and adherence to the Growth and Stability Pact.
"I remember saying quite clearly on every single occasion that I was there that we were going to have sound economic policies in the next government and that was what the election was fought on," he declared.
Voters had been told the facts, and decided to re-elect Fianna Fáil and the Progressive Democrats for "a wide variety of reasons".
"In my view, they knew exactly what they were voting for," he declared.
Dismissing Opposition resignation calls, he said commentators had argued that the Government "had missed the boat" because the election was called after the height of the boom had passed in 2000. "From early 2001 there was an economic downturn. The figures have proven that it started then. Right throughout 2001, people did know that there was an economic downturn." The 2001 budget was based on a 3.9 per cent growth rate "a long way from the growth rates of previous years", while all Government Departments were told last January that they would get no extra money this year.
Asked if he believed that his reputation had been damaged by the accidental release of the memorandum, he said: "I can't do very much about the perception. And politicians live by perception."
Asked if he was going to keep the Special Savings Incentive Accounts (SSIAs) scheme, he said: "The answer to that question is Yes. I am after saying it 54 times over the past year.
"The Irish people proved that when they saw a good deal they went for it, to allow people the incentive to save. It was a good idea then, it is a good idea that will be continued."
On Monday, the Minister for Transport, Mr Brennan and the Minister for Communications, Marine and Natural Resources, Mr Ahern, both left open the possibility that the system could be at least amended.
However, Mr McCreevy said: "No other Fianna Fáil Minister has said that to me. I am sure that they would bring it to my attention if they so thought.
"Every Fianna Fáil minister at the time thought it was the most brilliant idea ever conceived and [some of them] actually thought during the election that it increased the FF and the PDs vote.
"There has been no discussion in Cabinet or outside the Cabinet with colleagues about the incentive scheme. It was brought it for a period of five years. It is still a good idea," he declared.
Irresponsible economic policies destroyed Ireland's economy in the 1970s and 1980s, he said: "It would be the easiest thing in the world for the Minister for Finance to stand up and say every morning, 'What group will I please today, and what other demand, or other demand will I give in to?'
"But to do so would be irresponsible. People would pay a ridiculously heavy price in the years to come. I am not going to do that. Our budgetary policies over the coming five years will be based on what we can afford," he declared.
Calling for a Yes vote in the Nice Treaty referendum, the Minister said: "For us to vote No would be the singularly most disastrous step economically that we have ever taken."
