IFAC tells Michael Noonan: No more fiscal surprises

Finance Minister Michael Noonan has enough money for modest tax cuts and spending increases, and shouldn’t be tempted to splurge any more new money, the country’s fiscal watchdog has warned.

The Irish Fiscal Advisory Council (IFAC) said the economy is already growing strongly and for Mr Noonan to sanction any more than the €1bn he has indicated for spending increases and tax cuts in his October budget would be unnecessary and unacceptable.

In a pre-budget report, IFAC said the budget package is already worth €2.4bn when various spending promises such as expenditure to plug the health deficit are taken into account.