Tax increases or spending cuts could be ahead, budgetary watchdog warns
Policymakers face ‘delicate balance’ of managing inflation, protecting poorer households and delivering on longer-term policies
The government could be forced to increase taxes or cut expenditure elsewhere in the economy if it chooses to introduce additional permanent measures to ease the cost- of-living crisis, the budgetary watchdog has warned.
In its latest update on the Irish economy, the Irish Fiscal Advisory Council (IFAC) said policymakers faced a “delicate balancing act” of managing high inflation, protecting poorer households and delivering on longer-term policies.
The warning comes against what the council described ...