Generous budget measures, over and above the Government’s 5 per cent spending rule, could trigger overheating dynamics, regulator says
The Central Bank of Ireland has warned the Government to avoid a budgetary giveaway ahead of the general election.
Asked what a giveaway budget looked like, the bank’s director of economics and statistics Robert Kelly said that if the Government continued with cost-of-living supports and other non-standard measures while trying to increase capital spending this could trigger an overheating dynamic.‘We saved for our wedding in 2007. We knuckled down for the year previous so we could have everyone we wanted there’In its report, the Central Bank urged the Government to adhere to the 5 per cent spending rule.
Separate data from the Central Statistics Office yesterday pointed to a bounce in exports in the first four months of the year on the back of a rebound in the pharma sector, which had slumped last year as demand for Covid vaccines and medications fell away. “Combined these have contributed to a more uncertain lag from planning permissions to commencements to when housing units are finally completed,” it said.
Cost-Of-Living Budget Economic-Social-Research-Institute-Esri Esri
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