PERILS OF PLACING OUR BETS AS THE HOUSE BURNS DOWN

THERE is a pressing case budgets ought to be multi-annual, but Budget 2020 had to be all about the here and now. With Brexit, an election and four by-elections on the horizon, protecting people, not self-serving party agendas, had to be paramount.

Indeed, yesterday’s “clarifying moment call” between Boris Johnson and Angela Merkel has made it “overwhelmingly unlikely” a deal will be done on Brexit, according to Downing Street.

And how does anyone budget for a blame game? It appears the UK will now crash out of the EU, unless the North stays in the EU customs territory.

Traditionally, a budget might be used to garner political capital which can then be converted into votes. But scope for creative use of public largesse to grease the wheels of an election did not exist. Despite €3.1bn of expenditure, against such a grim background political opportunism was not on.

We are moving into terra incognita: Fianna Fáil has indulged the Government for the last time and had its say. Finance Minister Paschal Donohoe too has had to dig deep and look ahead.

These are unprecedented times; being forced to ear-mark vast sums for events that are entirely beyond our control is akin to betting everything on black on the roulette wheel. And Mr Donohoe found himself being forced to place all our bets in advance of the house burning down. The stakes could scarcely be higher.

Supports for jobs and critically safe-guarding family incomes while introducing the carbon tax were anticipated.

The usual procession of petitioning ministers were roundly dismissed with their special pleading. Managing a no deal had to be front and centre.

All other considerations, including ambitions to be more socially progressive, were circumscribed.

The carbon tax increase is probably a dollar short and day late. Climate change will not wait on us.

But balancing rural and urban prerogatives, in terms of fuel consumption and transport options, meant change would be gradual. Nor could Mr Donohoe meaningfully engage with the enormous problems in housing or health.

The Government normally has a job of convincing the Opposition and the public of its budgetary intent. This time out the ‘safety first’ mantra was self-evident.

They say life is 10pc about what we experience and 90pc about how we respond to it. So, if nothing else, this Budget had to be all about responding.

Fine Gael once had a reputation for fiscal probity. The hair shirt was de rigueur in its wardrobe. Much of this has been lost in recent years due to ill-advised public pay deals and an overdependence on golden-apple windfalls from multinationals.

The exceptional circumstances in which this Budget was framed must not be forgotten. Creating space to manage the financial risks that lie ahead was vital.

We have shown before we can manage adversity, proving as a nation when the chips are down desperation can be as powerful as inspiration.

In this Budget the ‘safety first’ mantra was self-evident