Budget 2023

Government could cushion impact of inflation if public sector pay deal agreed - IFAC

Irish Fiscal Advisory Council warns government faces a difficult balancing act between impact on businesses and households of soaring prices while not exacerbating inflation and driving prices higher

Sebastian Barnes, the chairman at IFAC, said protecting those in need from rapidly rising prices would be very expensive.

Finalising a deal to give public sector workers a 6.5 per cent pay rise would cost €1.3 billion but leave the government with additional room to cushion the impact of inflation for other citizens, the country’s budget watchdog has said.

In its pre-budget statement, the Irish Fiscal Advisory Council (IFAC) warned that the government faced a difficult balancing act between cushioning the impact on businesses and households of soaring prices while also not exacerbating inflation ...