Date Released: 24 September 2014
- No scope for tax cuts, despite positive economic projections. An adjustment of €800 million in Budget 2015 balances the requirement for fiscal prudence with the need to avoid doing harm to an emerging economic recovery, according to the latest Quarterly Economic Observer (QEO) from the Nevin Economic Research Institute (NERI) latest).
The latest QEO – published on Wednesday 24th September - suggests that policy must now focus on the real side of the economy: employment and real incomes. Public investment in social housing, education and high speed broadband infrastructure should be prioritised in the upcoming Budget.
NERI economist Dr Tom McDonnell warned against reducing the revenue-raising capacity of the state. Dr McDonnell noted:
“Given Ireland’s low revenue base there is no room for a reduction in the overall level of taxation. Instead, there is a strong case for the Government to fund a large-scale programme of public investment focussed on areas such as social housing, education and high speed broadband infrastructure.”
“While the latest quarterly figures are positive, concerns remain around the high level of debt, weak credit conditions and unemployment,” Dr McDonnell added.
Speaking in advance of the official launch of the report in Buswells Hotel, NERI Director Dr Tom Healy stated “NERI’s research shows that there is a strong case for increasing the overall level of public capital investment to help address the current crisis in housing and the pressures in education.”
To read the full report click here