Budget 2024: Ifac warns Government not to be tempted by spending increase or tax cuts

The Irish Fiscal Advisory Council is also urging the Government to stick to its national spending rule

The Irish Fiscal Advisory Council estimates that Budget spending would need to increase by €5.6bn to cover increasing costs. Picture: iStock

The fiscal watchdog has stepped up its warnings should the Government be tempted to tap into windfall tax revenues, currently flooding into the Exchequer, to hugely increase spending or slash taxes.

In its latest fiscal assessment report, the Irish Fiscal Advisory Council, or Ifac, said the Irish economy was already performing strongly and that using windfall corporation tax receipts to fund any substantial giveaway level of additional spending could not be justified at this time.