According to Pat Leahy in the Sunday Business Post ,Finance Minister Brian Cowen has issued a stark warning to Ministers to curb public expenditure growth. This is a repeat of 2002. Prior to the 2002 General Election public expenditure escalated at an unsustainable rate. In 2001 it was 17.6% and 2002 it was 14.8%. Finance Minister of the time Charlie McCreevy in the immediate aftermath of the election slammed the brakes on public expenditure. He introduced public expenditure cuts and stealth taxes.
In the run in to the 2007 General Election once more the Government purse strings were loosened. In 2006 public expediture rose by 10.5%. Growth for 2007 could be 13%.
The formula is clear. Allow huge rises in public expenditure prior to General Elections. This increases the well being of the electorate and wins elections. Once the election is over hammer the voters. They have short memories.
This policy has worked wonders for Fianna Fail.
Read Sunday Business Post article