Why the watchdog is worried about Budget 2027

They are worried that an oversized package risks pushing inflation and household costs higher. The watchdog set out its position in its annual pre-budget statement, published overnight.

IFAC said spending overruns have become “routine and have repeatedly pushed spending above budget-day plans”.

Over the past decade they have averaged more than €2 billion a year in today’s terms, and the last time spending came in at or below budgeted levels was 2013.

The Summer Economic Statement points to voted spending rising by €7 billion, a 5.9% increase, plus €1.5 billion in new tax measures.

IFAC calls that net spending growth of 6% in 2027, ahead of the roughly 5% it considers sustainable, and flagged €8 billion of standing pressures that would swallow much of the room for new measures.

It is a familiar concern for households already facing electricity arrears at their highest ever level and tighter mortgage rules for first-time buyers.

IFAC also warned that following the current medium-term plan would mean €7 of every €8 collected in corporation tax going on ongoing commitments, with just €1 saved.

The IFAC spoke about the pre-budget statement, that "as a result, it is not appropriate for an economy that is already in a strong position."

Budget 2027 lands on 6 October.