The council says the government is "avoiding hard choices" in the upcoming Budget.
The government's Budget plans appear to be "at the limit" of what's prudent, according to the Irish Fiscal Advisory Council.
The watchdog says the domestic economy is recovering strongly, and the budget deficit this year is expected to be below official forecasts.
The government's planning to increase the level of spending by 4.2 billion in 2022 - and cut taxes by half-a-billion.
Chair of the Fiscal Advisory Council, Sebastian Barnes, says they shouldn't go any further than that:
Fiscal council, however, warns about implications of bigger deficits down the line https://t.co/uHh5hKqDzf via @IrishTimesBiz
— Irish Times Business (@IrishTimesBiz) September 14, 2021
The IFAC adds that the government is "avoiding hard choices" in the upcoming Budget.
The watchdog says there are major issues to tackle like the ageing population, climate change and reform of the health service.
Sebastian Barnes says the government should prioritise which approach to take:
Plan to spend more and cut tax ‘risky’, IFAC warns https://t.co/zroMb6He7N
— Irish Examiner (@irishexaminer) September 15, 2021
And, the council says, the budgetary watchdog says it should consider extending the Covid support schemes, if they remain necessary.
The Irish Fiscal Advisory Council expects the number of people claiming the PUP to fall faster than expected - but demand for the EWSS to hold steady.
It says a targetted approach should be taken as more sectors open up - and urged caution about temporary measures becoming permanent.
Chairperson Sebastian Barnes says some of the job and income supports could be extended in 2022
The Public Expenditure Minister says the Government will reflect carefully on IFAC concerns about the upcoming Budget.
Minister Michael McGrath says they’ve noted their concerns but there will always be risks
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