Country living in a 'never-never land' which will come to 'an abrupt halt' over State spending

That's according to a leading public affairs consultant.

It's after yesterday's exchequer figures which showed a deficit of €4.2 billion for the first quarter of the year.

Tax revenue for the first three months was up 1% - thanks to a strong showing from income tax and VAT.

Public Affairs Consultant Gerard Howlin believes parts of the returns are good, but has many concerns over spending:

"The country is living, mentally, in an ever levelled land as it's going to come to an abrupt halt, ideally that hold should begin in the next budget. We don't want the economy falling off a cliff or to go into a sudden enlarging situation, but certainly over a year or 18 months, there has to be a swift dialling down off the subsidies."

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