Govt advised to keep austerity course

The Government is being told by its own fiscal advisors to stick to the planned €2bn of austerity measures in October's budget.

The Fiscal Advisory Council is also sounding warnings about the plans to give something back to workers in the form of a tax cut.

However, the think-tank does suggest the Government is planning too much austerity for the years 2016 to 2018.

The coalition has been softening the talk about austerity with Labour in particular adamant there will not be a €2bn correction announced on October 14.

The Fiscal Advisory Council however added anything less could undo all the progress.

Fine Gael has promised a tax cut since the start of this year and the Council is advising against this because it could force more expenditure cuts down the road.

From 2016 to 2018 the coalition has to achieve a balanced budget position and it is here the council believes there is room to ease up on austerity measures.

Most Read in Ireland