OECD adds voice to warnings against give-away budget
The Organisation for Economic Co-operation and Development is warning Finance Minister Brian Cowen not to draw up a give-away budget for 2007.
In its latest outlook for the Irish economy, the international think-tank says it expects growth to increase to 5% next year before falling back to 4.5% in 2008.
However, it says budgetary policies should focus on keeping inflation in check.
The OECD says Government spending should be geared towards alleviating bottle-necks in the economy and should refrain from fuelling consumption.
It also says more competition is needed in the electricity and gas sectors as they currently contribute disproportionately to inflation.
