OECD echoes Ifac call for spending growth to be limited to 5%

Intergovernmental body warned of need for caution around corporate tax revenues

Michael McGrath, Minister for Finance, and Paschal Donohoe, Minister for Public Expenditure and Reform, have been warned by the OECD to not become overly reliant on corporate tax revenue. Picture: Sasko Lazarov/

The OECD has echoed the Irish fiscal advisory council’s (Ifac) call for the restoration of a 5 per cent spending growth limit, urging caution when it comes to the potentially transient nature of corporate tax revenues.

In its 2023 economic outlook, the intergovernmental agency said “given the uncertain impact on multinationals’ location strategies of the increased 15 per cent effective corporate tax rate, set to kick in in 2024, part of any further windfall tax ...