Irish government says 2025 budget package will be worth EUR8.3 billion

July 09, 2024 at 09:06 am EDT

(Alliance News) - Budget 2025 will be worth EUR8.3 billion, according to a key fiscal document published by Ireland's government.

Cabinet signed off on Tuesday on the summer economic Statement, which gives a broad sketch of what the next budgetary package will be worth.

It sets out a spending package of EUR6.9 billion and a tax package worth EUR1.4 billion for the budget on October 1.

A surplus of EUR6 billion is projected for next year.

The July publication aims to increase transparency by giving more opportunities to question the government's financial decision-making.

Amid rumours of an election before the end of the year – and after a strong performance by the coalition government's two main parties coupled with Sinn Fein's lacklustre result in European and local elections – there has been a suggestion that there will be a budget "giveaway" this autumn.

Asked about the prospect of a "giveaway" budget on his way into Cabinet on Tuesday, Taoiseach Simon Harris said it would be an "expansionary" package.

The Fine Gael leader said the three coalition party leaders had had "a number of very intensive engagements" over budget 2025 with the finance and public expenditure ministers.

He said the government was "very conscious of the need to balance" the country's finances to help working families and the vulnerable people in society but without going back to the Irish economy's "bad old days".

"I always wonder what that phrase 'giveaway budget', what that actually means," Harris said.

"Every budget, when your economy is doing well, it does try to give people back some of their own money, and that's what it is – some of their own money in terms of tax changes.

"And of course it does try to support people in society who need that the most: children at risk, people with disabilities, carers and our older people as well. Of course, that's the approach we'll take.

"I look forward to debating different budgetary strategies with the opposition in the days, weeks and months ahead, but of course, this budget will be an expansionary budget.

"But it will also be a budget that will make sure that we safeguard the future of our country, we made a number of very significant decisions last year, in terms of setting up funds for the future of our country, and being able to put money into infrastructure, into climate action, that's really important that we do that as well.

"We never want to see this country go back to the bad old days of 'because I have it I'll spend it'.

"But at the same time, we need to recognise that there is a need to help working families and help certain groups in society."

Last year's budget was worth EUR6.4 billion, with EUR5.3 billion in spending and a tax package worth EUR1.1 billion.

Charities, opposition parties and other groups have begun to set out their requests for what should be included in budget 2025.

source: PA