Fiscal outlook dims hopes for spending hikes

The room available for tax cuts and spending increases in future years appears limited despite the Government raising growth forecasts in its new economic outlook.

The Department of Finance yesterday published its so-called Draft Stability Programme Update — the annual outlook Ireland has to submit to the European Commission — in which it confirmed an increased growth forecast this year of 4.3%.

The update, however, left unchanged since the last budget the amount the Government will collect in tax revenues this year because of the uncertainties the country faces from Brexit.