Irish Finance Minister Brian Cowen delivered details of the country's budget to parliament Wednesday against what he called a "challenging economic backdrop." "The global economy is beset by uncertainties, financial markets are highly volatile and the construction sector domestically is experiencing a slowdown. However, we must not lose sight of the fact that the fundamentals of the economy are still good," Cowen said, according to dpa. The finance minister predicted that economic growth next year would be at the "relatively modest pace" of 3 per cent, compared to the runaway double-digit growth of the Celtic Tiger years. After over a decade of growth the Irish economy faltered this year with declining competitiveness, reduced tax revenue and a stalling house market. Despite reduced tax receipts, the figure for public current expenditure in 2008 would be 53 billion euros (78 billion dollars), Cowen said, an increase of 1.7 billion euros or 8.6 per cent on 2007. The general government deficit would be 0.9 per cent of gross domestic product (GDP). Announcing the National Development Plan and its infrastructural investment as "my top priority," Cowen said capital spending will rise by 12 per cent next year. Cowen's centrist Fianna Fail party was returned to power for a third successive term in May elections. He is the favourite to succeed Taoiseach (prime minister) Bertie Ahern, who has said he will step down when he reaches 60 in 2011.
