Tax revenues to rise even as economy cools

Finance Minister Paschal Donohoe looks set to have ample room for spending rises and tax cuts in his next budget even as the Government cut the growth outlook.

The latest economic forecasts, which the Department of Finance releases in the Stability Programme as part of the regular cycle of budget forecasts prepared for the EU, show it cut its headline GDP growth projections for this year and in 2020 from previous forecasts in October’s budget.