Irish finance minister Brian Lenihan has claimed the country’s economy will grow slightly this year as he unveiled 6 billion euro (£5 billion) savings in the most draconian budget in the history of the state.
“Our actions to stabilise the public finances have made progress,” the minister said.
Mr Lenihan said Exchequer figures paint a picture of a country returning to growth after a prolonged and deep recession.
Opening his budget 2011 speech, he told the Irish Parliament that the economy, as measured by gross domestic product, would increase by an average of 2.75% by 2014.
Mr Lenihan said Ireland needed the help of the International Monetary Fund to break the vicious cycle that threatened the national finances and banking system.
“Without this support, there would have been serious doubts about the ability of the state to raise funds at reasonable cost to pay for key public services and to provide a functioning banking system to support economic activity,” he said.
“That is the reality.”
Setting out the many dramatic reforms facing Irish workers, families and the unemployed, the minister said the old age state pension would not be touched.
But he warned over the next few years there will be further social welfare cuts.
The Budget also includes plans to make a 10 euro (£6.40) reduction in the lower and higher child benefit rates.
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