Irish Fiscal Advisory Council Critiques 2025 Budget

The Irish Fiscal Advisory Council (Ifac) has criticized the recent budget package announced by Finance Minister Jack Chambers, warning that it mirrors past economic mistakes by injecting billions into the economy while at full employment. Ifac highlighted that the €9.1 billion budget, including €6.9 billion in permanent measures, could exacerbate inflation and widen the budget deficit, adding roughly €1,000 to typical household expenses. While acknowledging the positives of record employment and growth, the watchdog pointed out ongoing pressures such as worker shortages and rising rents. It also noted that only half of the cost-of-living measures were targeted effectively, suggesting that funds could have been used more efficiently to support those in need. Minister Chambers defended the budget as balanced, asserting that the government adhered to its summer economic statement, while Minister Paschal Donohoe emphasized the commitment to avoid past excesses. Ifac concluded that Ireland requires a more strategic vision for sustainable economic management.