Double the Budget, Double the Impact
Yesterday’s Budget announcement wasn’t just one, but two major developments. The Government unveiled a huge spending package for 2025, alongside a supercharged expenditure plan for the remaining months of this year. With an additional €3.7bn allocated to spending for 2024, the financial landscape has seen a significant shift.
The Irish Fiscal Advisory Council cautioned that only half of the €2.1bn in announced supports were effectively targeted, raising concerns about the sustainability of the increased expenditure. However, the Government defended its actions as a means of aiding citizens in making ends meet, particularly amidst a full employment scenario and a rising population.
While the Budget includes measures to counteract inflation by adjusting taxes and credits, the heavy spending raises questions about future economic stability. The funds from the sale of AIB shares and the pending decisions on the €14bn windfall from Apple are also under scrutiny. Nevertheless, the emphasis on infrastructure investment has been praised for addressing critical development areas.
As the Government walks the tightrope of increased spending, the sustainability of its fiscal decisions remains in focus. With the economy reliant on corporate taxes and overall economic health, any fluctuations could drastically alter the budgetary landscape.
Read more: Latest Budget 2025 stories