IFAC publishes Fiscal Assessment Report

The Irish Fiscal Advisory Council (IFAC) has published its June 2026 Fiscal Assessment Report outlining that although the economy remains strong overall, high energy costs pose risks to future growth. The report also highlights that while headline figures appear robust, they conceal underlying weakness in public finances, with a continued reliance on corporation tax receipts paid by a small number of multinational taxpayers. 

The report outlines that the planned pace of net spending growth is faster than the sustainable growth rate of the economy with most corporation tax receipts being spent rather than saved. As Government plans to run modest surpluses in the years ahead, IFAC notes that the Government will need to borrow to finance some of its planned contributions to its savings funds. 

IFAC recommends that Ireland should have its own domestic fiscal rule, as the Medium-Term Fiscal and Structural Plan is not a good guide for budget decisions. Opportunities to prepare for the future challenges of population ageing and climate change which will place significant pressure on the public finances are being missed. 

The report outlines four key recommendations for budgetary policy:  

• Ensure that budgetary policy helps to smooth fluctuations over the economic cycle.  

• Deliver larger surpluses to better position the Government to address future pressures. 

• Establish a domestic fiscal rule to provide a clearer framework for budgetary decision-making.  

• Enhance the accuracy and transparency of budgetary forecasting.