The business lobby, IBEC, last night described the Government's spending targets as "too soft", and was concerned about some trends. While the target of an annual increase of 4 per cent in spending was being met in broad terms, it also disguised worrying factors, IBEC said. "Public service pay costs rose by 10 per cent in 1997, 9 per cent in 1998 and are projected to rise by 5 per cent in 1999.
Increases in PRSI receipts, which are netted off in the Government target, together with lower debt service costs disguise a sharper increase in the cost of providing Government services," the group said.
