‘Budget measures totalling €500m required’

The Government should stick to a €500m adjustment in October’s budget, Investec chief economist Philip O’Sullivan has said.

A consolidation of €500m would be achieved through introducing water charges and is much less than the €2bn that the IMF and the European Commission have asked for in October’s budget.

“The positive momentum in consumer spending is a key factor behind the outperformance of the public finances. Exchequer returns data show that year to date, tax revenues are plus 6.4% year-on-year, and 2.5% ahead of guidance, while expenditure is, on the whole, contained.