Fiscal Advisory Council says B...


Fiscal Advisory Council says Budget should target lower income households

RedFM Sport
RedFM Sport

07:28 31 Aug 2022

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An independent watchdog says the government should target Budget 2023 spending towards vulnerable and lower income households.

The Fiscal Advisory Council says there isn't enough money to bring in all measures mentioned, such as higher public sector wages, welfare payments, and cost-of-living supports.

But they agreed with government plans to raise spending by 6.5%, rather than the recommended 5%.

Chairperson of the council, Sebastian Barnes, says ministers won't be able to please everyone:

"The big challenge for the Government in this budget is to help more vulnerable households, people are already under huge pressure because of higher energy and food prices without adding any more cash into the economy at a time when inflation is already high, when the labour market is very tight we know there aren't too many people around who are unemployed.

"You really need to get that balance right where there's enough to help people, but not putting too much extra money into the economy."

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