Government warned not to overspend in budget as economy nears 'full capacity' 

With €6.5bn in new measures announced for next month's budget, the Government has been advised not to use transitory funds to finance day-to-day expenditure

Ahead of next month's budget, Finance Minister Michael McGrath announced €6.5bn worth of new measures, with €5.25bn going to additional expenditure and €1.15bn dedicated to tax cuts.

Renewed warnings against the use of windfall revenue to fund day-to-day expenditures have been issued to the Government by both the Economic and Social Research Institute (ESRI) and the Central Bank ahead of what is largely expected to be an expansionary budget.

Speaking in front of the Oireachtas Committee on Budgetary Oversight on Tuesday, Professor Kieran McQuinn of the ESRI reiterated the need to differentiate recent surges in revenue between those sustainable in the medium term and those more windfall in nature, which is "particularly pertinent" given recent surges in Irish corporate tax receipts.