The Irish Fiscal Advisory Council (IFAC) has said there is "very limited space" for new policy initiatives beyond cost-of-living measures in the upcoming Budget.
Its Chair, Sebastian Barnes, told the Oireachtas Committee on Finance, Public Expenditure and Reform and Taoiseach today that the €2.7 billion of permanent core spending increases outlined in the Summer Economic Statement is "relatively large compared to recent Budgets."
However, he went on to say much of it will be required just to "stand still" in maintaining the existing level of public services.
He also said that it would "likely be insufficient" to fully index public sector pay and welfare rates, given current rates of inflation.
