Government’s budgetary strategy risky, fiscal council warns

Irish Times | Sep 15, 2021 at 2:04 AM
  • The Government is adopting a “risky” budgetary strategy that “avoids making hard choices” and may ultimately overheat the economy, the Irish Fiscal Advisory Council (Ifac) has warned.
  • In the summer statement, the Government altered its original plan to move to a balanced budget by 2025 in favour of running a sequence of larger budget deficits to allow for increases in age-related spending and greater investment in housing and green infrastructure.
  • The council warned, however, that running “significant budget deficits” during a period of strong growth and with high public debt carries risks.