Ireland set for tough Budget announcement

Ireland's government is expected to announce tax rises to help the economy get back on its feet, according to reports.

Around €3.5 billion is set to be taken out of the economy as ministers look to reduce spending in the coming years.

And there could also be tax changes for small businesses to help encourage further growth and job creation in an attempt to tackle the growing deficit.

Speaking ahead of the announcement yesterday (December 4th), Deputy Prime Minister Eamon Gilmore said that it will be difficult for people.

"Tomorrow's budget will be a very tough budget. It was always going to be a tough budget, but it is the budget that is going to get us to 85 percent of the adjustment that has to be made," he told Reuters.

"It will therefore put the end in sight for these type of measures and these type of budgets."

Figures published last week revealed that unemployment has fell in the third quarter of the year for the first time since 2005.

Posted by Thomas Fletcher

Last updated: 5th December 2012