Government's €1.5bn Budget estimate 'broadly appropriate', says Fiscal Advisory Council

Government's €1.5bn Budget estimate 'broadly appropriate', says Fiscal Advisory Council

The Fiscal Advisory Council has given its approval to the Government's Budget plan, but has warned against any move to increase the package.

In a pre-Budget statement, the FAC said that proposal to implement tax cuts and spending increases of between €1.2bn-€1.5bn is economically prudent.

However, it also noted that the figures are at the higher end of the acceptable range and said that the Government should stick to the plan in order to protect the economy from potential future shocks.

The Government set out plans for a Budget package of €1.5bn in its Spring Statement.

"The pre-announced Government plan from the April Spring statement, of a Budget containing measures of between €1.2bn and €1.5bn is broadly appropriate, given the state of the economy and the public finances," said chief economist with the Fiscal Advisory Council, Thomas Conefrey.

He added: "The State faces some considerable expenditure pressures over the medium-term - so related to Ireland's demographic structure changing, and also just increases in the costs of providing existing levels of public services.

"So given those pressures, there is a need therefore to be mindful and ensure that the tax base is respected."

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