Ifac: Poor budget planning remains 'highly concerning'

Ifac also said it expects the Government to breach the 5% spending rule in the next budget which could put the economy under pressure and contribute to inflation, despite strong activity overall post-pandemic.

Ifac have stressed the point that corporate tax receipts are a volatile source “but if we budget properly, we should not be worrying about its fluctuations”, Photograph: Leah Farrell / © RollingNews.ie

Poor budgeting in the future could overheat the economy which is already performing above capacity, warned the budgetary watchdog.

The Irish Fiscal Advisory Council, or Ifac, said that the Government is not planning ahead enough to cater for Ireland’s large elderly population and a lack of infrastructure, including housing which is putting pressure on capacity, and is instead focusing on overspending.