Government Warned Over Promising ‘moon And Stars’ For Economy

GOVERNMENT WARNED OVER PROMISING ‘MOON AND STARS’ FOR ECONOMY

The government is being cautioned against promising too much as the economic recovery continues.

It comes in the wake of figures yesterday showing the tax take for 2014 was 1.2 billion euro higher than expected.

Taoiseach Enda Kenny also pledged to cut income tax, create more jobs, and take steps that would see fewer people having to pay the USC.

Chief Economist at Goodbody Stockbrokers Dermot O’Leary says an expected election in 2016 must not be allowed to sway economic policies.

“The major risk is politics trumps economics and fiscal prudence” he said.

“We have seen small signs of that in the last two months of last year that some of that prudence is going by the wayside”.

“We’ve heard announcements yesterday in relation to promises around tax and spending – I don’t think the government is in the position to promise the moon and the stars at this point in time” he added.

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