The Irish Fiscal Advisory Council has accused the Government of failing to manage the public finances in a prudent manner. In its latest report,the council warns that Budget 2021 includes “substantial and permanent increases” in spending unrelated to the Covid-19 pandemic amounting to €5.4 billion without long-term funding. “The increases are surprisingly large in the context of uncertain growth prospects and compared to previous budgets,” the council says. “The council assesses that the permanent spending increases included in Budget 2021 – without a sustainable plan to finance them – are not conducive to prudent economic and budgetary management,” it says. “However, introducing large permanent spending commitments without a plan to fund them sustainably creates fiscal risks.”

Source: The Irish Times December 01, 2020 01:00 UTC