Budget watchdog warns of more austerity

Budget watchdog warns of more austerity

The Budget watchdog has said there is a 50/50 chance of the Government missing its deficit target, and more austerity may be needed.

The Irish Fiscal Advisory Council said the Government ignored its advice to make €3.1bn in adjustments in Budget 2014, which means Ireland runs a significant risk of breaching its 3% deficit ceiling.

It also said it advised the Government to take a precautionary credit line when leaving the bailout, and that failing to do so may not have been in Ireland's best economic interests.

Chairman of group, Professor John McHale, said that decision, and weaker than expected Budget cuts, means Irish people could face more austerity next year.

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