Larger Package of Tax Measures in Budget than Expected
Budget 2027 also lifts the higher income tax threshold and adds €10 a week to pensions and welfare payments, officials said.
- On Tuesday, the Irish Fiscal Advisory Council criticized the government's budget, warning it puts public finances on a "worse trajectory" by "repeatedly breaking established spending limits and increasingly relying on high-risk corporation tax."
- Spending increases have run "at a blistering pace in recent years," IFAC noted, with the budget showing current spending overspends of €2.1 billion in 2026 that could rise to €2.5 billion if trends persist.
- Ireland's tax base remains heavily concentrated, with just three firms paying nearly half of all corporation tax, while the government plans to spend about €6 out of every €7 collected from this source.
- Projections show government debt increasing by more than €35 billion by 2030, while the annual interest bill is forecast to reach €6.4 billion over the same period.
- The council argued the government should show restraint while the economy performs well, saving more to "help ensure it can support people's jobs in the next recession and avoid a disastrous repeat of the cutbacks in areas like housing.
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85 Articles
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