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Ireland's fiscal council warns against using volatile Apple tax windfalls for long-term infrastructure, urging fiscal discipline.
Ireland’s budgetary watchdog, the Irish Fiscal Advisory Council (IFAC), has warned against using volatile corporation tax windfalls—like the €14 billion from Apple—to fund long-term infrastructure spending.
IFAC chair Seamus Coffey said nearly 90% of recent corporation tax revenue is now spent on current expenses, up from 60%, raising concerns about fiscal sustainability.
The government plans to invest €275.4 billion in infrastructure over ten years, partly funded by the windfall and asset sales, but IFAC stresses that new spending must be offset by revenue increases elsewhere, such as broadening the tax base.
The council cautioned against overspending, citing budget overruns in education and health, and urged counter-cyclical fiscal policy to prepare for future economic downturns, aging population, and climate challenges.
Finance Minister Simon Harris acknowledged IFAC’s advice, supporting a fixed spending limit to ensure long-term fiscal responsibility.
El consejo fiscal de Irlanda advierte contra el uso de las ganancias inesperadas de impuestos volátiles de Apple para infraestructura a largo plazo, instando a la disciplina fiscal.