The budget watchdog says there is a 50/50 chance of the government missing its deficit target - and more austerity may be needed.

The Irish Fiscal Advisory Council says the government ignored its advice to make €3.1 billion in adjustments in budget 2014 - and that means we run a significant risk of breaching our 3% deficit ceiling.

It also says it advised the government to take a precautionary credit line when leaving the bailout - and that failing to do so may not have been in our best economic interests.

Chairman of group, Professor John McHale, says that decision - and weaker-than-expected budget cuts - means we could face more austerity next year: