Large budget package and tax cuts will only drive up prices, finance watchdog warns

Irish Fiscal Advisory Council said a 6% increase in spending was higher than the sustainable growth rate of the economy of about 5% and was not appropriate for the current position the economy is in

Public expenditure minister Jack Chambers has told ministers they need to find further savings and efficiencies within their existing allocations before they will be granted additional money. Picture: Sam Boal/Collins Photos

The Government has been warned a large budget package will only drive up prices and its plan to increase spending by 6% is not appropriate given the current state of the economy.

In its pre-budget statement, the Irish Fiscal Advisory Council (Ifac) also criticises the fact spending overruns by the Government have now become routine.