ESRI upbeat on domestic demand and urges neutral budget
As our economy recovers, the body predicts 5.3% GDP growth next year
David Byrne, Ciara Morley and John FitzGerald at the ESRI quarterly economic commentary yesterday: their policy recommendation is that the budget should be fiscally neutral. Photograph: Cyril Byrne
With Budget 2015 less than a week away, the Government has received the blessing of the Economic and Social Research Institute for a “neutral” fiscal plan in which there would be no net rise in taxation and no further cutbacks.
The ESRI diverges with the Government on the policy front. It would prefer a big social housing investment to income tax cuts. But the institute still says the eventual economic out-turn will not be dramatically different if the Government does not change course.