The Government is set to reveal its Summer Economic Statement today ahead of October’s Budget.
A decision was made at this time last year to limit increases in public spending to 5% a year to bring the public finances back into line after expenditure during the pandemic – this decision is now to be set aside.
The government is facing pressure to respond to the cost of living crisis and has the benefit of better-than-expected tax returns.
The government is now expected to develop a budget worth €6.7 billion, which is €2.2 billion greater than planned with expenditure increased by between 5% to 10%.
It is expected that the government will continue with reductions in taxes on fuels and will announce a double social welfare payment be made in the Autumn – this would be in addition to the Double Payment at Christmas.
