NERI questions proposal for a €3 billion budget adjustment
The Nevin Economic Research Institute (NERI) has questioned the call in the latest medium-term review published by the Economic and Social Research Institute (ERSI) for a budget adjustment of over €3 billion in this Autumn’s budget.
Responding to ERSI report which was published on 10th July, NERI Director Tom Healy, said: “Now is the time to ease back on the size of the consolidation and allow more breathing space for domestic demand to recover. Research by the NERI indicates that in the absence of a more timely and ambitious investment stimulus, there is a higher risk of missing the 3% budget target through large-scale fiscal consolidation such as that planned by the Government before the Promissory note deal in February of this year and suggested in the report from the ESRI”.
In its most recent Quarterly Economic Observer, NERI proposed the full use of the proceeds of the ‘Promissory note’ deal to reduce the fiscal consolidation by €1 billion in the coming budget, a fully commercial investment stimulus of €4.5 billion over the next 30 months and increases in capital and income taxes for the top 10% of households (by income).
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