The Economic and Social Research Institute has urged the Minister for Finance to bring in a more generous Budget this year than last.
The Institute says the December Budget should be aimed at getting the economy back towards its potential growth rate and that an increase in Government borrowing would not be a problem.
However, the ESRI warned that next year wages in the public service will be rising by almost four times the rate in the private sector, and that this will cause problems for Social Partnership.
The economy has been slower this year than the ESRI predicted it would be just three months ago.
Yet despite this, unemployment has not risen nearly as much as expected, and the Government will not have to borrow any more money than thought at the start of the year.
So says the ESRI in its latest commentary on the state of the economy.
And despite the fact that economic growth in Ireland this year is lower, and that its forecasts for the European economy next year have been revised down, the Institute still says the economy will perform better next year.
