The Irish Fiscal Advisory Council (IFAC) has called for a “substantial multi-year stimulus” to restore demand in the Irish economy.
The group’s pre-budget submission warned that the future of the economy is “exceptionally uncertain” and said that the Government needs to introduce stimulus to make up for the lack of demand and support supply.
While IFAC did not specify the size of a suggested stimulus, it recommended that the Government should use the budget to put a multi-year stimulus package in place.
Meanwhile, Minister for Finance Paschal Donohoe has said that the Government will base Budget 2021 on the assumption of a no-deal Brexit.
Mr Donohoe said “We will base the budget on the assumption of a disorderly Brexit and there will also be no broad increases in income taxation.”
- From the beginning of next year, bilateral trade between the UK and the EU will be on World Trade Organisation terms
- In the absence of a vaccine, the economy – and broader society – must co-exist with the virus.
- As per the programme for government, the sectoral priorities will be health, housing and climate change.
- ‘A Recovery Fund’ will be established and the details and mechanics of this will be provided on Budget day.