The Irish Fiscal Advisory Council, an independent watchdog responsible for ensuring better management of the public finances, has said that the government should not reduce the size of spending cuts and tax increases in the coming two budgets in the country.

Experts believe that the savings generated from the deal on the promissory notes in February could help change the budget adjustment over a longer period. Prof John McHale of NUI Galway, the head of the watchdog said that council believes that the government should not consider reducing the planned adjustments of _3.1 billion in 2014 and _2 billion in 2015.

The council said that that there is a one/third chance that the government will not meet its debt reduction targets set of the year 2015. It also said that the reducing spending cuts and tax increases would further increase the likelihood of not achieving the targets for the Irish government. . Ireland has emerged as the only nation in the Eurozone that has received a bailout aid package from the group that is recording growth and also has a current account surplus indicating that the country might be able to revive its economy soon in the coming years.

Prof McHale spoke in-line with the European Commission and the IMF in stating that significant uncertainties remain for the Irish economy.