ESRI casts doubt on ‘validity’ of spending rule

The institute said it anticipates that the economy will grow next year

ESRI research professor Kieran McQuinn said more attention needs to be focused on the validity of the spending rule as opposed to requiring the Government to 'rigidly stick' to it.

The criticism directed at the Government for breaching its 5% spending rule in the October budget is misguided in the current economic environment, the Economic and Social Research Institute (ESRI) has suggested.

The think-tank made the comments after the budgetary watchdog criticised the Government last week for overspending amid inflationary pressures.