The State’s independent budget watchdog, the Irish Fiscal Advisory Council (Ifac) has not been shy in raising concerns over the economic approach taken by the current Coalition and the last in recent years.
There is another warning this week, with the Republic said to be “flying blind” without the updated medium-term fiscal plan that was promised in last year’s programme for government.
The Coalition is “budgeting like there’s no tomorrow” with no forecasts available beyond 2026, according to Ifac.
As Ian Curran reports in our lead story today Ifac’s latest fiscal assessment report said the forecasts produced alongside October’s budget provide the shortest horizon possible.
“There is no excuse” for this, Ifac said on Wednesday, particularly given the Government’s commitment to updating its previous medium-term forecast following last year’s general election.
Speaking to reporters on Tuesday, Ifac chairman Seamus Coffey said the Government was required under European Union fiscal rules to submit a medium-term plan, which it did before the election last year.
However, it is also required to submit a revised plan following an election and a change of government.
“The programme for government from last spring indicated that this medium-term expenditure plan would be updated in the summer,” said Mr Coffey. “This didn’t happen. We were hoping, perhaps, it would be published along with the budget. That, again, didn’t happen.”
In the report, Ifac reiterates its long-standing concern about the State’s ever-growing reliance on corporation tax receipts to fund spending increases.
Mr Coffey said he met Tánaiste Simon Harris upon his appointment as Minister for Finance last week, following Paschal Donohoe’s sudden resignation to take up a senior role with the World Bank.
He said Mr Harris listened to the concerns and asked questions. But he was only “a day or two into the job” at the time of their meeting and “didn’t give any feedback from his perspective”.
“It was good to be able to get our messages across,” said Mr Coffey. “We will be sending this final report to the Minister. We’ll be looking for a response over the coming weeks, but certainly we got a few messages across last week.”
Overall, Mr Coffey said the Republic is “flying blind” in the absence of a medium-term spending plan or specific rules limiting budgetary expenditure increases.
Ifac’s warning about the need for the medium-term plan may well have landed with the Tánaiste.
In a speech to the Cork Chamber’s Dublin dinner on Tuesday evening Mr Harris was to say: “One of my immediate priorities will be to now set for our country a medium-term fiscal framework – an economic plan which ends short termism – and which will anchor our spending and taxation plans for the time ahead.”
MetroLink facing ‘inevitable delay’
Elsewhere on the front page, Dublin Editor Olivia Kelly reports that construction of the MetroLink rail line is facing an “inevitable delay” following a court challenge to the decision to grant permission for the multibillion euro project, Transport Infrastructure Ireland (TII) has said.
Judicial review proceedings have been taken by a group of residents living in Ranelagh, Dublin 6, near the planned southern terminus of the 18.8km, mostly underground, line. The route is designed to run from Swords, in north Dublin, to Charlemont, close to Ranelagh in south Dublin via Dublin Airport.
It all comes as Transport Minister Darragh O’Brien is due to unveil his department’s investment plan under the revised National Development Plan (NDP) this afternoon. The long-planned metro is among the projects that are front and centre in the NDP.
Best Reads
Ceann Comhairle Verona Murphy says a photo opportunity with Sinn Féin does not mean she support a Bill being put forward by the party. Ellen Coyne has the story.
The newfound unity among parties on the left in the wake of President Catherine Connolly’s election victory is tested as Dublin City Council passes its budget. Political Editor Pat Leahy has analysis here.
In her piece today Miriam Lord writes about the mystery of the missing Micheál and how it left Opposition leaders stuck with an understudy, Minister for Transport Darragh O’Brien.
Lemass or Parrott? A Bill to rename Dublin Airport is brought forward in the Dáil. Sarah Burns reports.
Playbook
The Cabinet meets this morning. Our tee-up story by Jack Horgan-Jones on what is on the agenda – including amendments to the Mental Health Bill – is here.
Proceedings in the Dáil begin with an opportunity for TDs to raise topical issues at 9am.
There is to be a debate on a Private Members’ motion from the independent technical group on strengthening whistleblower protections from 10am.
Leaders’ Questions is at noon.
Government Business in the afternoon (from 2.57pm) includes a motion seeking Dáil approval for Horse and Greyhound Racing Fund regulations and for the approval of regulations relating to migration and integration; security; and justice in the European Union between 2028 and 2034.
The report and final stages of the Finance Bill to bring in measures announced in Budget 2026 are also taking place from 8.28pm.
The Committee on Health is to look at the standards for education and training of psychotherapists at 9.30am.
Sustainable transport, particularly electric vehicles, will be the topic for the Committee on Transport from 9.45am.
The Committee on Climate, Environment and Energy will examine delivery challenges in the offshore wind sector from 12.30pm.
Coimisiún na Meán, the Media Commission, will be before the Committee on Arts, Media, Communications, Culture and Sport to be asked about the regulation of online platforms and supports to improve online safety and participation.
The Committee on Finance and Public Expenditure will be looking at “supplementary estimates” – ie additional funding needed in 2025 at the Department of Public Expenditure and organisations under its remit such as the Office of Public Works, from 3.30pm.
The role of Gas Networks Ireland and ESB Networks in delivering Ireland’s national energy infrastructure will be explored with representatives from both organisations by members of the Committee on Infrastructure and National Development Plan delivery.
You can find the full Dáil, Seanad and Committee schedules here.
