Ireland's fiscal watchdog has warned that the Government is planning to spend too much money in next month’s Budget.
The Irish Fiscal Advisory Council (Ifac) said that a "more restrained approach would help avoid overheating the economy and leave room to respond to future downturns".
The organisation said a total spending increase of €9.4 billion is currently planned for Budget 2026.
"Given the economy is still performing well, this is not appropriate," it said.
The independent organisation, set up in the wake of the financial crisis to provide oversight of the public finances, also warned spending so far this year is well ahead of what was planned.
The Coalition proposed increasing expenditure by €3bn this year, but it is likely to rise by €7.6bn.
The fiscal council said this "repeats the pattern of spending overruns in recent years".
It said the Departments of Education, Children and Justice increased spending by 7.5% so far this year, while Budget said the rise would only be 2.5%.
The council warned the Government is relying on windfall tax payments by multinationals to finance additional spending.
It said if these volatile tax receipts are excluded, spending is running at €8bn more than Government is collecting.
The body said it is "disappointing" the Government has not published a medium-term fiscal plan which was promised to be released this summer.
The organisation also said Ireland lacks a spending rule which would set a limit on the annual increase in expenditure.
Overall, the council said the Irish economy continues to perform well with record employment and robust consumer spending.
It said while there is uncertainty created by the imposition of tariffs by the Trump administration, they have not yet had a major impact on the economy.
Ifac Chairman Seamus Coffey said: "The Irish economy is in a strong position, despite high uncertainty.
"As a result, this is not a time for a large budgetary package. That should be reserved for periods where the economy is weak and needs support."
