Budget proposals ‘inappropriate’, says think tank

The equal split approach, between spending increases and tax reductions, being proposed for October’s budget has been rejected as “inappropriate”, given the current levels of both revenue and spending.

In its latest economic forecast document, published yesterday, left-leaning fiscal think tank, the Nevin Economic Research Institute (Neri) said there is “no scope” for a reduction in tax take in Budget 2016, “given the pressures on the expenditure side”.

It has been mooted that the Government will have around €1.5bn with which to reduce tax and increase public spending in the Budget, with Finance Minister Michael Noonan intimating a 50-50 split between the two measures.