Fiscal Advisory Council warns Govt against Budget overspend

The Government is being warned not to increase Budget spending by more than €3.5bn this year.

Fiscal Advisory Council warns Govt against Budget overspend

The Government is being warned not to increase Budget spending by more than €3.5bn this year.

The Irish Fiscal Advisory Council says the economy is doing well, but we still need to be careful with our money.

At the moment there is no evidence of over-heating, however there are fears it could become a factor if housing supply improves.

Sebastian Barnes, a committee member of the Irish Fiscal Advisory Council, says Government spending has been creeping up over the past few years.

Mr Barnes said: "Core spending is basically increasing at the same rate as tax revenue. Some of that tax revenue is, of course, good news - the economy is recovering, sustainable growth is happening.

"But a lot of that is driven by the increase in Corporation Tax, which obviously raises a number of questions, also some of it is likely to be cyclical.

"So, it;s really a question of keeping spending down at a rate that's really sustainable."

- Digital Desk

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