ESRI to warn against Budget day spending spree

The Economic and Social Research Institute (ESRI) is advising the Government not to engage in a spending spree in this December’s Budget.

In a paper due to be presented at a conference in Dublin today, the institute will say that the global economy is at its strongest in recent years and that the Irish economy is expected to grow by 5% next year.

However, the ESRI will also warn the Government not to give in to public expectations of a giveaway budget.

It will say that the most prudent course is a neutral Budget, with some widening of tax bands and minor increases in social spending above the rate of inflation.