Mohan Sinha
23 Jul 2026

DUBLIN, Ireland: The Government is planning a budget package worth 8.5 billion euros for October 2027. This package includes tax cuts and increased spending, but it is smaller than the one introduced the previous year, as the Government aims to slow down growth in everyday spending.

According to the Department of Finance on July 22, the budget will include 1.5 billion euros in tax cuts, mainly focused on income, and seven billion euros in extra public spending. This would mean an increase in spending of 5.9 percent compared to the previous year.

Spending is expected to grow by more than eight percent this year. This is because extra funding was added in April on top of the total 9.4 billion-euro budget. The additional money was used to support people facing high fuel costs and to cover extra expenses in the education sector.

Ireland's independent fiscal watchdog, the Irish Fiscal Advisory Council, has estimated that 5.5 billion euros will be needed next year. This amount would cover a new pay agreement for public sector workers and maintain current services and benefits in real terms, taking into account inflation as well as a growing and aging population.

The Government has already committed to increasing capital spending by 1.1 billion euros in 2027 to address a large infrastructure gap. This leaves limited space for introducing new spending measures.

After the Summer Economic Statement was published, Chambers Ireland called on the Government to focus on a budget that reduces cost pressures for businesses and speeds up the delivery of infrastructure needed to support competitiveness.

Ian Talbot, Chief Executive of Chambers Ireland, said that businesses are dealing with ongoing increases in energy, labor, regulatory, and operating costs. He also said that infrastructure development is not keeping up with the needs of a growing economy.

Budget 2027 should focus on reducing costs, speeding up project delivery, and supporting investment, jobs, and regional development, he added.