A Clare Government TD claims working people will be “supported” in Budget 2027, but insists money must be put aside for a rainy day.
It’s as the Department of Finance has predicted smaller economic growth than initially envisaged, as well as a larger-than-anticipated Government surplus.
The Spring Economic Forecast is intended to provide an “evidence-based assessment of where our economy stands today and the risks the economy faces into the future”.
The statement unveiled by the Finance and Public Expenditure ministers says a general government surplus of €9.2 billion is expected, which is up more than €4 billion on its budget day projection last year.
It attributes this to higher corporation tax receipts, increased revenue in its social insurance fund and less spending by bodies like local authorities.
However, it also predicts growth of 2.1%, which is down from its previous 2.3% estimate, and this reduction, it says, is down to the war in Iran.
Bodyke Fine Gael TD Joe Cooney says the Government is well-positioned to assist those on middle incomes in the upcoming budget, but argues money must be left aside for severe economic shocks.
Speaking after the announcement, Tánaiste and Finance Minister Simon Harris has said “the turbulence in the international environment is a reminder of the importance of keeping our approach to overall budgetary policy balanced and sustainable across the medium-term”.
Sinn Féin leader Mary Lou McDonald, meanwhile, says the forecast tell us the “money is there” to help those struggling financially and that it’s the “duty of the Government to defend its people in times of crisis”.
While it’s within the gift of the Government to lower excise duty on fuel, it’s legally unable to remove it entirely due to EU minimum rate requirements.
Despite this, Clarecastle Sinn Féin Councillor Tommy Guilfoyle is calling for it to be scrapped.
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