Finance Minister Paschal Donohoe has stated that no final decisions have been made on any particular measures for the upcoming Budget, and confirmed that an agreement “won’t happen until at least this time of week”, reports RTE.
This follows a warning issued yesterday by the Economic and Social Research Institute (ESRI), cautioning the Government about the potential risk of overheating the economy due to its proposed €9.4 billion increase in spending in next month’s Budget.
This alert came just a week after the Central Bank also flagged concerns, stating that the proposed additional spending in the Budget was “too large”, reports RTE.
Speaking earlier today, Minister Donohoe said he and Minister for Public Expenditure Jack Chambers both agree that the forthcoming budget must avoid introducing new risks to the economy.
He said: “Minister Chambers and I met early today to review the progress that we are making on Budget 2026, we are united in recognising that this budget has to be one that doesn’t add to any risk within our economy, and we’re well aware of the different perspectives and warnings that have been given by various bodies in recent weeks,” reports RTE.
Addressing the ongoing cost-of-living crisis, both ministers indicated they are planning more focused support measures to take the place of the larger one-off supports used in recent years.
“Even though the rate of inflation has come down, the cost of living is still high,” Minister Donohoe said, reports RTE.
A decision has yet to be made regarding the future of the rent tax credit, which is currently set to expire at the end of the year.
“I’ll just emphasise my recognition of the importance of that credit and the role that it plays in supporting tenants,” Mr Donohoe added.
Social Democrats TD Sinéad Gibney said that next month’s Budget must tackle rising energy prices, reports RTE.
Appearing on RTÉ’s Today with Claire Byrne, Ms Gibney said the Government should consider ways to hold energy firms accountable for ongoing price hikes rather than simply raising the fuel allowance each year.
“There needs to be three tier action on energy costs. We need to actually see what the infrastructure capital funding we’re going to put in and when we’re going to see the results of that”, she said, reports RTE.
“Why are some companies able to keep their prices and others aren’t? Why do we all have to switch to maintain prices and why are the parent companies of these companies making so much profit?” she said, reports RTE.
“Obviously every company has to make profit, but it doesn’t need to be to the extent that the profits are there and we need to invest in renewables,” she said, reports RTE.
“It can’t just be continually increasing fuel allowances or energy payments, that’s not a way to figure out our energy problems in the future,” she added, reports RTE.
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