Employers group IBEC is defending its calls for tax cuts and massive spending increases as 'responsible'.

The group wants to see an additional €1bn in Budget 2016 set aside for infrastructure including transport and broadband, while also bringing in income tax cuts.

It comes after IBEC forecasted economic growth of 5.3% for 2015 - and predicted that unemployment will fall below 9 % by the year's end.

Their 5.3% forecast is well ahead of the government predictions contained in the Spring Statement.

IBEC chief executive Danny McCoy told Newstalk Breakfast that increased spending is a responsible way to boost the economy.

Meanwhile chief economist with IBEC, Fergal O'Brien, said the group is concerned about how EU rules could affect investment.

"We are particularly concerned that the new EU rules on government expenditure are actually retarding that ambition around future investment," he said.

"We're really saying to government that they need to go and talk to the European Commission, they need to get concessions around investment expenditure in the economy."

"The rules make sense for controlling day to day tax and day to day expenditure but not for investment," he added.