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IFAC Says Government Is ‘Budgeting Like There’s No Tomorrow’ as Underlying Deficit Widens

The fiscal watchdog warns planning has stalled beyond 2026 due to missing forecasts.

Overview

  • Only 15% of corporation tax receipts will be saved in 2026, down from 32% this year, according to IFAC.
  • Excluding volatile corporation tax, IFAC estimates an underlying €7 billion deficit this year, worsening to €14 billion next year.
  • Spending is set to grow by over 11% in 2025 and forecasts have been repeatedly revised up, leaving 2025 expenditure €12.5 billion above the Budget 2024 target.
  • There are no public budgetary forecasts beyond 2026, and the promised updated medium‑term plan has not been submitted to the European Commission.
  • IFAC urges a national rule to guide spending and a shift to multi‑annual budgeting, citing heavy reliance on taxes from a few large US multinationals as risky.