A worse than budgeted for tax short fall of 8 billion euro.

Tonights’ RTE evening news gave a report on the remarks made by Brian Cowen about the exchequer returns to be published tomorrow. From the report:

When asked about how government can rescue the public finances Brian Cowen said no option can be ruled out. The completed exchequer returns for last year will show a worse than budgeted for tax short fall of 8 billion euro, and he acknowledged that without corrective action the exchequer deficit for next year could be 20 billion.

He also said no option can be ruled out including scrapping the national wage agreement and reducing public sector jobs will be discussed when he mets the social partners later this month and although there were difficulties lying ahead he was not concerned about FF’s prospects in upcoming local and European elections.