Ireland’s budgetary watchdog has warned the Government it cannot compensate everyone amid what is expected to be a “lasting upward shift" in energy prices. It said there would be “difficult choices” in the Budget 2023.
The Irish Fiscal Advisory Council said Ireland can expect higher cost-of-living pressures and slower growth over the coming years, with energy and food prices likely to remain higher than had been initially forecast at the beginning of this year.
In its pre-budget statement, the council warned that the Government cannot help everyone to manage an increase in costs – pointing out that it would cost €7 billion to fully index public sector pay, pensions and welfare payments, which is outside the ceiling of €4.9 billion available for core spending increases in 2023.
