All eyes will be on Paschal Donohoe come budget day. Photo: Collins
No government ever got re-elected by promising to take the heat out of the economy. Yet, that is increasingly what economic think tanks want this Government to do. Next month’s budget is expected to inject €9.4bn into the economy through higher spending and tax cuts.
This is at a time when Ibec says Irish GDP will grow by 6pc this year and a further 4.6pc next year. Even stripping out the multinational effect, Ibec sees domestic demand rising by 2.8pc this year and 2.4pc next year. Not exactly an economy in need of billions more in current spending and tax cuts!