Irish Prime Minister Brian Cowen announced a 24 4-year "national recovery plan", the Government will in the next 4 years, 15 billion euros deficit reduction to achieve the 2014 deficit to GDP of proportional control requirements in the EU within 3%.
Cowen and Finance Minister in Han, Yue Hange Bromley Common Environment Minister at a press conference that the deficit reduction to achieve this goal, the government will be cut in 4 years, 10 billion euros of public spending and to achieve tax revenue growth of 50 million euros.
He said the government will first cut six billion euros in 2011 budget deficit of 40% of the deficit reduction target, the current deficit to GDP ratio fell to 9.1%, and finally in 2014 the control requirements in the EU within 3%.
He said that by 2013, the Irish public debt to GDP ratio will reach 102% of the highest level, but by 2014 this proportion will fall to 100%.
Under the plan, the government will cut pensions and other social welfare spending, reduce the salaries of public officers. By 2014, the government will cut social welfare spending 2.8 billion euros, cutting the pay of public officers of 1.2 billion euros. Based on the 2008 level, the government will cut 24,750 public servants. New Government will also introduce new public pension system staff, newly public officers will also pay a 10% reduction. In addition, the government will improve the standards of college tuition and fees collected water. Currently, the Irish civil tap water is free of charge. In addition, the government will lower the minimum wage standard, from the current fell to 7.65 euros 8.65 euros per hour. In taxation, the government will maintain the 12.5% corporation tax; by changing the income tax collection standards, and tax revenue of 1.9 billion euros; 2013 VAT rate will be adjusted to the current 21% 22% 2014 23% of the tax rate will be adjusted to .
Cowen said that through these measures to cut expenditure, real GDP growth rate of Ireland expected to reach 1.75% in 2011, 2012, 3.25%, 3% in 2013, reached 2.75% in 2014.
Cowen and Finance Minister in Han, Yue Hange Bromley Common Environment Minister at a press conference that the deficit reduction to achieve this goal, the government will be cut in 4 years, 10 billion euros of public spending and to achieve tax revenue growth of 50 million euros.
He said the government will first cut six billion euros in 2011 budget deficit of 40% of the deficit reduction target, the current deficit to GDP ratio fell to 9.1%, and finally in 2014 the control requirements in the EU within 3%.
He said that by 2013, the Irish public debt to GDP ratio will reach 102% of the highest level, but by 2014 this proportion will fall to 100%.
Under the plan, the government will cut pensions and other social welfare spending, reduce the salaries of public officers. By 2014, the government will cut social welfare spending 2.8 billion euros, cutting the pay of public officers of 1.2 billion euros. Based on the 2008 level, the government will cut 24,750 public servants. New Government will also introduce new public pension system staff, newly public officers will also pay a 10% reduction. In addition, the government will improve the standards of college tuition and fees collected water. Currently, the Irish civil tap water is free of charge. In addition, the government will lower the minimum wage standard, from the current fell to 7.65 euros 8.65 euros per hour. In taxation, the government will maintain the 12.5% corporation tax; by changing the income tax collection standards, and tax revenue of 1.9 billion euros; 2013 VAT rate will be adjusted to the current 21% 22% 2014 23% of the tax rate will be adjusted to .
Cowen said that through these measures to cut expenditure, real GDP growth rate of Ireland expected to reach 1.75% in 2011, 2012, 3.25%, 3% in 2013, reached 2.75% in 2014.
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