NERI: Fiscal space ‘too tight’ for further tax cuts

Another economic think-tank has called on the Government to hold off on tax cuts in next month’s budget; saying the current fiscal space is too tight.

The Nevin Economic Research Institute (NERI) yesterday published its latest economic forecast in which it argued that a focus on educational, infrastructural and R&D spend, in Budget 2017, is the only way to boost long-term productivity and economic growth.

“Existing and future spending pressures mean that the case for cutting taxes in Budget 2017 is very weaksaid senior economist Tom McDonnell, who added the available fiscal space will remain very tight for the next two years.