17 Sep Irish watchdog calls for large scale stimulus in October budget
(C) Reuters. Informal Meeting of Ministers for Economics and Financial Affairs in Berlin
DUBLIN (Reuters) – Ireland’s budget watchdog on Thursday called for the government to implement a “large-scale multi-year stimulus” in its 2021 budget on Oct. 13 due to “exceptionally high” uncertainty surrounding COVID-19 and Brexit.
The Irish Fiscal Advisory Council has for the past several years consistently called for more fiscal prudence from the government.
But it said in a statement that this year’s budget “should ensure that there is a substantial multi-year stimulus in place for 2021 and beyond to continue targeted support measures and to support demand”.
It said, however, that a roadmap should be set out as part of the budget to show how tax and spending priorities will be balanced over the next five years.
Finance Minister Paschal Donohoe said on Wednesday that he expected to post a budget deficit of at least 4.5% to 5.5% of gross domestic product in the 2021 budget, down from around 10% this year.
But he said that he would take into account advice from the fiscal council before finalising his plans.
Irish watchdog calls for large scale stimulus in October budget
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.