Less cash to be available for new spending measures in Budget 2027
The Irish government has announced that the 2027 budget will be the tightest in years, with limited funds available for new spending measures. Most of the projected €7 billion increase in spending will be absorbed by rising service costs, an aging population, and public sector pay deals.
Why it matters
This signals a period of fiscal austerity for Ireland, potentially impacting public services and limiting the government's ability to implement new social or economic programs.
There will be less cash available for new spending measures next year as Ministers face the tightest budget next October since before the Covid-19 pandemic, according to figures published by the Government on Wednesday.
Government spending on day-to-day services and building new infrastructure will grow by €7 billion next year to €125.5 billion, Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers announced after the Cabinet approved the Summer Economic Statement.
The statement, one of the key budgetary documents published by the Government over the course of the year, shows new spending and tax adjustments are planned at €8.5 billion, with €1.5 billion in tax changes.
The package is likely to be mostly composed of changes to tax bands to ensure rising wages do not lead to workers paying more tax.
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