Ireland’s finance minister, Jack Chambers, has unveiled a pre-election budget that includes personal tax cuts and additional cost-of-living supports, amidst speculation that a general election might occur before Christmas. The budget takes advantage of a projected €25 billion surplus for the year, partly boosted by a large tax contribution from Apple. Chambers emphasized that this windfall would be allocated towards infrastructure investments in housing, energy, water, and transport, which he believes could be transformative for the country’s competitiveness and attractiveness to foreign businesses.
The budget provides €8.3 billion in tax cuts and spending increases, along with €2.2 billion in one-off cost-of-living measures. Despite the positive economic forecast, with expected growth of 2.5% next year, the government faces criticism from Sinn Féin, the main opposition party. Sinn Féin’s finance spokesperson, Pearse Doherty, accused the government of wasteful spending and failing to resolve key issues in childcare, health, and housing. He particularly highlighted the declining rate of homeownership among young people, laying blame on Fine Gael.
The budget has also raised concerns from the Irish Fiscal Advisory Council (IFAC), which warned that increased spending could overheat the economy, as it surpasses the government’s own spending cap. Despite inflation dropping below 2%, local sectors like hospitality are showing signs of growing inflation. The economy, however, remains strong, with record-high employment levels and continued benefits from corporate tax revenues, though infrastructure investment is seen as a critical need.
