Government slammed over 'poorly founded' budget planning

The new report, Looking Beyond Covid-19, warns about extra spending during the pandemic becoming locked in — but also airs optimism about the prospect of a strong post-Covid economic recovery. Picture: Larry Cummins

The Irish Fiscal Advisory Council (Ifac) has slammed the Government over "poorly founded" budget planning, warning that any new spending increases will likely need to come out of higher taxes or from spending cuts.

In its latest fiscal report, Looking Beyond Covid-19, the fiscal council has warned that €5bn in increased spending may have been permanently locked in during the Covid crisis, and that much of the tax revenue bounty from the economic upswing in the next few years has already been spoken for.