Mr Varadkar made the claim before a week of talks between Finance Minister Paschal Donohoe, ministers, and Fianna Fáil over their budget spending demands, potentially instigating a fresh row between the rival parties.
Speaking at a media briefing before the Dáil’s return tomorrow and today’s Cabinet meeting — which will see new “excessive usage” water fine plans and promised legislation for this term rubber-stamped — Mr Varadkar said his first focus is to “balance the books”.
However, asked about the two-to-one spending-to-tax cuts ratio, which Fianna Fáil said yesterday remains key to their support for a budget, Mr Varadkar hinted that he may not agree to the ratio.
“Historically, we’ve never actually managed to quite make the two-to-one, so the ratio isn’t decided yet,” he said.
“But it has certainly been the case in the last number of budgets that the focus has been more on finding additional funds for services than tax reduction.”
The suggestion that the two-to-one ratio may not be met came before a Cabinet meeting today which will see Government sign off on plans for any home using more than 1.7 times the average amount of water per day will be hit with “excessive usage” fines from summer 2019.
Under the bill put forward by Housing Minister Eoghan Murphy, Government will recommend to the commission on energy regulation that any household using more than 1.7 times the average amount of water per day will be given “excessive usage” fines from July 2019.