This sum is add another 755 million euros that the Dublin government intends to cut spending on infrastructure, announced days ago.
"Our country has suffered a major economic crisis in living memory, which has caused a big drop in state revenues," they say.
Ireland seeks to reach a balanced budget and save 3,800 million euros.
The Irish Minister for Public Expenditure and Reform, Brendan Howlin, announced Monday the introduction of an austerity plan designed to save next year € 1,400 million with welfare cuts. This sum is added another 755 million that the Dublin government intends to cut spending on infrastructure, announced two weeks ago.
"Our country has suffered a major economic crisis in living memory, which has caused a drop in revenue the state, "the minister said at the launch on Monday of the General Budget for 2012.
The EU and the IMF require Ireland to reduce the deficit to 3% of GDP in 2015 This is the first budget prepared by the Executive coalition between the Conservatives and Labour since he took office last February, three months after Ireland accepted a bailout from the European Union (EU) and the International Monetary Fund (IMF), measured at 85,000 million euros.
And for the first time in the history of this country, accounts for the next year there are over two days , a task that ran on Monday by the Labour Howlin, while Finance Minister , Conservative Michael Noonan, will address this Tuesday the government’s fiscal program for 2012.
The common goal of both owners is to reach a balance that allows Dublin save 3,800 million euros in 2012 to reduce its public deficit to 8.6% of Gross Domestic Product (GDP), Howlin recalled. In the long term, the aid program of the EU and the IMF forced the Irish Government to implement an austerity plan that would reduce the deficit to 3% of GDP in 2015.
The minister said that the public sector wage bill will be reduced during 2012 to 400 million euros within the first phase of a comprehensive plan to eventually eliminate up to 23,500 civil service posts in the next four years to generate a total savings of 2,500 million euros. Among the sectors most affected by the cuts include health, education and social protection , which, together, will see their budgets reduced by just over 1,000 million euros.
The Government will undertake public spending during 2012 with a budget of 55,800 million in total, the Government will undertake public spending during 2012 with a budget of 55,800 million euros, said the Labour leader. Howlin said that the Irish budget system is "antiquated" and needs a "radical reform", with more emphasis on three-year planning in the future.
In contrast, the Executive shall not affect state pensions and the amount they receive each week unemployed , whose base is around 180 euros to, nor will lower the wages received by each family, regardless of income, for each first and second child.
From the following children, state aid is reduced proportionally , a measure which the State expects to save about 43 million annually. "In any government, whatever its strength, likes to be the bearer of bad news , but our options are very limited. The public knows this and is wary of those who offer simple solutions, "argued Howlin.
However, the Minister welcomed the Irish economic situation has stabilized during the last twelve months , since accepting the rescue of the EU and the IMF. "Twelve months ago we were a problem for Europe, now problems in the European and global economy threaten our recovery, "said Howlin.
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