Ireland's new minority governmentpresented a tough budget that trimmed public spending across
the board. The current budget deficit target was set at 1.20
billion punts, which is 6.9 pct of GNP. This compared with the
1986 figure of 1.395 billion punts, 8.5 pct of GNP.
    Finance Minister Ray MacSharry told parliament "Conditions
are extremely difficult and there is no room at all for soft
options." The Exchequer Borrowing Requirement was 1.85 billion
punts, 10.7 pct of GNP, compared with 2.145 billion punts or
13.0 pct of GNP last year.
    MacSharry announced a wage freeze for Ireland's 187,000
civil servants and said all new civil service jobs had to be
approved by him. Mortgage interest relief was cut, some housing
grants axed and social welfare and health costs trimmed. Income
tax and excise duties were left unchanged.
    Eager to stop the outflow of funds from Ireland, he said "We
must do more to encourage non-residents, and especially
expatriates, to invest in the Irish economy."
    Without giving details, he also said Ireland wished to
provide the right conditions and a favourable taxation climate
for developing the international fnnancial services sector.
 REUTER
