Noonan pledges to do whatever necessary to hit 3% deficit target

The Minister for Finance will take “whatever means” necessary to get the budget deficit below 3 per cent and insists he has the full backing of both government parties.

Speaking at the University of Limerick today Michael Noonan admitted the adjustment figure would be somewhat less than the figure of €2 billion that was anticipated last April.

However, it is too early in the year to say with any certainty what the level of adjustment will be, he added.

“All the signs are postive at present, but I have seen years previously when the first half is quite strong and it fell away in the second half of the year so it is too early in the year to say with any certainty what the level of adjustment will be but things are moving in the right direction,” he said.

According to Mr Noonan people are confusing the budgetary target with the way of getting to to the target.

“The argument about how many billions it will be is the ways and means of arriving at the target. The target is to get a budget that brings the deficit below 3 per cent and whatever means are necessary to get the budget deficit below 3per cent I will take and I will have the support of both parties in government to do that in October,” he said.

"The tax take at the end of the first five months is €446 million ahead of target and PRSI receipts go into the Department of Social Protection so there is additional money there as well."

Mr Noonan insisted there is “absolutely no doubt” about his determination to meet the 3 per cent target.

He made his comments at the €15 million Graduate Entry Medical School at the University of Limerick, which he officially opened today.