Decisions on Budget 2025 will be influenced by the altered inflation environment, according to Minister of Finance Michael McGrath.
However, he clarified that this does not rule out one-time payments.
“The changed inflation environment will have an impact on our approach to the Budget and we did have a vast array of inflation related payments, exceptional supports, one-offs last year,” he said on Morning Ireland.
“We are in a different environment and that will need to be reflected in the approach to the Budget because our ability to do what we did is because we have been managing the finances carefully, but you can’t have exceptional supports all the time, so there will be a change in the approach.
According to him, there would be a shift in attitude regarding fiscal policy as inflation is returning to the goal level of 2%.
In the next months, he said, there will be discussions on budgetary measures.
He noted that he and Paschal Donohoe, Minister of Public Expenditure, National Development Plan Delivery, and Reform, will make sure that the public finances be handled with caution.
Tell us your thoughts in the Facebook post and share this with your friends.