Council predicts €10bn rise in national debt because of Budget

Council predicts €10bn rise in national debt because of Budget

The Government's decision not to implement one more austerity budget will result in the national debt remaining €10bn higher in 2018, according to the Irish Fiscal Advisory Council.

Ahead of last month's budget, the fiscal advisory council were telling the Coalition to go ahead with the planned €2bn adjustment.

The Government ignored that advice, and did not even stick to a neutral budget, actually increasing spending.

The council has now laid out the cost of that decision - the national debt in 2018 will be €10bn higher than it would have been had the Government stuck to the plan.

Chairman of the Fiscal Advisory Council Professor John McHale says the Government needs to remember that austerity is not over.

There was also criticism of the Coalition for not producing a medium-term economic plan, particularly in relation to spending and demographic pressures.

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