Budget must protect the poor  but not stoke inflation, says Ifac

'A balance is needed between protecting the economy and poorer households from higher energy and food prices, while not adding to inflation through second-round effects,' it said

This is not the first time Ifac has warned the Government about over reliance on corporation tax receipts. Picture: Leah Farrell/ RollingNews.ie

The budgetary watchdog has warned difficult decisions will have to be made in this year’s budget, as the Government may not have the funds it needs.

Nearly €7bn that is needed for the full indexation of public sector pay, pensions, welfare payments, and existing plans exceeds the almost €5bn available for core spending increases, according to The Irish Fiscal Advisory Council, or Ifac.