Ifac warns budget spending splurge could rise household bills by €1000 a year

The Irish Fiscal Advisory Council warns a bumper budget will create 'the illusion of gain' but make cost-of-living crisis worse

Families anxious about high prices of food, housing, and medicine may welcome a giveaway budget but Ifac is warning against 'pumping money into an economy that is already performing strongly'. iStock

The Government’s expected spending splurge in the upcoming Budget 2025 will create “the illusion of a gain” for household finances but will be costly in the long-run, the State’s budgetary watchdog has warned.

The Irish Fiscal Advisory Council (Ifac) said breaches of the Government’s own 5% spending rule will raise consumer prices and add €1,000 to households' yearly outgoings.