Budget will strike balance between spending and investing – Donohoe

ireland
Budget Will Strike Balance Between Spending And Investing – Donohoe
Public Expenditure Minister Paschal Donohoe, © PA Wire/PA Images
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By Jonathan McCambridge, PA

The forthcoming Budget will strike a balance between spending and investing in the future, Paschal Donohoe has said.

The Minister for Public Expenditure and Reform denied that measures in the spending plan would be influenced by electoral considerations.

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The coalition Government will deliver its final budget on October 1st before a general election is called.

Mr Donohoe said every budget “tends to be bigger than the one that has gone before it”.

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He told the RTÉ This Week programme: “It will have spending of around €105 billion.

“But at the very same time as we are trying to help with the issues of today, respond to all the needs that our people have, it would also be a Budget that would have a further budget surplus in it.

“Last year was the surplus of over eight billion euro, and we will be continuing to invest in the funds that will help us be careful about our future but also invest in it.

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“It is a Budget that I believe will get that balance right.”

But the minister said the spending plan would not be impacted by choices around the next government.

He said: “I see it as the final part of the sequence of budgets that have shown that we have been able to help and support our economy and society deal with many different shocks and one that will continue to make progress on the issues that matter of housing and the cost of living.

“We have to be aware of the impact that two years of very high rates of inflation have had on the standard of living of so many.

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“Even though inflation is falling, prices are still high and we know there are many within our society that due to rising prices are finding it tough to get by.

“I think it is reasonable and appropriate that the Government look to see how we can help and intervene to support them as we have in the past.”

The Apple logo on a shop
Apple has been ordered to pay back taxes to the Irish Government. Photo: Yui Mok/PA.

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Meanwhile, Mr Donohoe said he believed the Government would be able to give a direction in coming weeks about how it would use billions of euro in back taxes from Apple.

On Tuesday, the European Court of Justice issued a judgment to restore a 2016 European Commission ruling that Ireland gave undue tax benefits to Apple, which would be illegal under EU state aid rules.

Europe’s top court issued the final judgment that will see the Irish Government recover more than 13 billion euro in back taxes from the technology company.

Mr Donohoe said: “The party leaders and myself and (Finance) Minister (Jack) Chambers will be considering this matter in the coming weeks.

“I believe we will be able to give a direction or an outline regarding how that money could be spent.

“But there are a few bridges we need to cross before we get to that point.

“We need to understand when the money will be available and have a better sense of what that money could be.

“But whatever direction or whatever decision we make regarding the spending of the money, it will be one about the long-term benefit of our country, our people and our economy.”

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