The latest Nevin Economic Research Institute (NERI) Quarterly Economic Observer has been published today.

The report forecasts that by mid-2016 the number of persons unemployed will have fallen below 200,000 and that by end-2016 the number of people employed will exceed 2 million. Recognising the budgetary parameters set by the Government, the report argues Budget 2016 should prioritise public capital investment and a modest increase in social spending. 
 
NERI economist, Dr Tom McDonnell said, "The proposed 50-50 spilt between revenue and spending measures in Budget 2016 is inappropriate given the growth and equity implications associated with this approach. There is no scope for reducing taxes given the already low level of government spending and increasing pressure on public services arising from demographic changes. 

The available fiscal space is very limited. Priority should be given to an ambitious capital investment programme that will help sustain economic growth and job creation over the coming years."

He concluded, "Translating the improved economic outlook into a marked increase in household living standards should be based on continued job creation, real wage increases and protecting public services."

Source: www.businessworld.ie