The Irish Independent's View: Government must wake up to state watchdog's spending warning
These are the words of American economic historian Thomas Sowell.
It might seem as if our Government has gone to some lengths to prove him right on both counts in the eyes of the Fiscal Advisory Council (FAC). The state watchdog is concerned that spending is up almost 6pc already this year. 'At the current pace of growth, overruns of €2bn are likely,' the Fiscal Assessment Report says.
The extravagance can once again be traced back to bumper corporation tax receipts. As we know, the incoming billions are the envy of many European leaders; and a source of considerable indignation to Donald Trump.
The US president has made it plain that though he 'likes' us, we are causing him a world of pain when he sees what he regards as 'US tax dollars' flowing out of American coffers and into those of the Emerald Isle.
He has warned he is 'coming for them' and we have no reason to doubt him.
The FAC has been warning for the past few years that over-reliance on such golden windfalls could leave the State dangerously exposed when they come to an end, as they inevitably will. Today's warning is even more shrill. It notes that while phenomenal levels of excess corporation tax are keeping Ireland in surplus, 'without these revenues, there would be a substantial deficit, despite a strong economy'.
The report acknowledges that while the tide of good fortune could persist for a while yet, it will turn, so depending on it is 'high risk'.
It also notes how just three companies account for most of the excess corporation tax. A particular worry of the council is that the over-runs are not being acknowledged in new forecasts.
Every blessing ignored becomes a curse
Its chairperson, Seamus Coffey, even raised a concern about the 'plausibility' of the numbers being presented. He said it's hard to know precisely how overstretched government departments are, because monthly figures are not supplied.
The projected figures for 2025 expenditure remain unchanged, even though it is likely to rise by €3.7bn. This, the report states, is 'simply not credible'.
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Philosopher Paulo Coelho said: 'Every blessing ignored becomes a curse.'
Taking a rosy financial future for granted, which is written on such shifting sands, could come at extreme cost. Spending what we can afford really ought not be such a radical concept. There is a sword of Damocles over the world's economy thanks to Trump's tariffs.
The potential for wider wars in the Middle East or Ukraine could also wreak global trade havoc. Relying on the comfort of things we have taken for granted tends to come with a rude awakening.
How long can we continue to get away with pressing the snooze button on the FAC's alarm calls?
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