The Economic and Social Research Institute will tell the Oireachtas Budgetary Oversight Committee that the domestic economy is facing international headwinds and significant challenges in housing, infrastructure and public finances.
It suggests that current expenditure in the coming years should be targeted and restrained, while capital investment projects should be carefully sequenced.
TDs and senators will hear that while temporary measures have been successful in helping households deal with rising prices, their inevitable phasing out will cause affordability issues.
The ESRI believes this is likely to lead to knock-on effects on poverty and inequality if headline welfare payments fail to keep pace with income growth.
