Oireachtas Joint and Select Committees

Wednesday, 13 June 2018

Committee on Budgetary Oversight

Fiscal Assessment Report June 2018: Irish Fiscal Advisory Council

2:00 pm

Mr. Michael Tutty:

The real way to prevent overheating is to avoid spending too much or giving too many tax reliefs at a time when the economy is growing strongly. Extra expenditure and extra tax reliefs just add to the demand in the economy, which is what leads to overheating at a time when the economy and employment are growing well and unemployment is falling. Overheating would be avoided by not spending the money and reducing the debt level, as well as by putting money into a rainy day fund.

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