ESRI 'shares concerns' about demands on health budget for next year

Karina Doorley, senior research officer at the ESRI, said the institute shared concerns with the Irish Fiscal Advisory Council that the health allocation could be inadequate. Picture: Mark Stedman

The Economic and Social Research Institute (ESRI) has told TDs it shares concerns with the fiscal watchdog about the demands on the health spending next year.   

Speaking to the Oireachtas Budgetary Oversight Committee, Karina Doorley, senior research officer at the ESRI, said the institute shared concerns with the Irish Fiscal Advisory Council that the health allocation could be inadequate.  

Ms Doorley said the ESRI had not specifically looked at the spending announced in the budget for health, but she cited the spending demands entailed by an ageing population, waiting lists, as well as other potential effects on the health budget.  

She said that ESRI research showed that the budget was "progressive", but had relied on one-off measures to reduce the risk of people falling into poverty.

On the economy, Ms Doorley said the ESRI's latest report projected that growth would slow, as world demand for exports lessen, while specific parts of the multinationals which account for large part of overall exports also cut their exports. 

Nonetheless, the report showed the domestic Irish economy was performing at almost full employment, although the "substantial" budget measures added to risk of adding to price pressures., she told TDs. 

She said the ESRI also welcomed the Government's plans to set sovereign or savings funds, adding there may be an argument the Government could inject more monies into the funds. 

An ESRI report last week said that permanent solutions would be needed to safeguard incomes of low income households.