The Minister for Public Expenditure, Paschal Donohoe, has announced an additional €1bn in spending for 2024, specifically for the Departments of Housing, Social Protection, and Education. This supplementary estimate, approved at a Cabinet meeting, adds to the previously announced extra spending, bringing the total to €6.3bn.
Despite speculation linked to the general election, Minister Donohoe stated that the timing was to ensure proper funding for government departments later in the year. Minister Donnelly confirmed that more supplementary estimates would follow in the future.
Responding to demands from the hospitality sector for a reduction in VAT rates to 9%, Minister Donohoe highlighted the significant ongoing cost of such a move, estimating between €600m to €800m. The government remains cautious about permanent changes that could impact the budget.