The clock is ticking down to Budget 2025, and the impact of the windfall from multinationals is now clear. The latest snapshot of public finances reveals significant surpluses for this year and next, putting the Coalition in a strong position. Ministers Jack Chambers and Paschal Donohoe hinted at spending the funds on infrastructure, ruling out tax cuts or day-to-day expenses.
With corporation tax receipts exceeding expectations, the surplus is set to be €25bn this year and €12bn next year. However, caution is advised to avoid fueling inflation. Despite a healthy economy and low unemployment, the Irish Fiscal Advisory Council warns against quick spending and advocates gradual investment in infrastructure.
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With the housing crisis looming, the Coalition faces the challenge of balancing fiscal prudence with public demands amidst an abundance of cash. The Council emphasizes the need for sustainable spending, even in the face of unexpected windfalls like Apple’s back tax.
