People will get the first official look at how the upcoming budget will be framed with the publication of the Summer Economic Statement today.
A special Cabinet meeting will convene at 2pm to discuss spending for 2023.
The Summer Economic Statement sets out how much money the Government thinks it will have to spend for next year and gives a major update on the state of the economy ahead of the budget.
This year it’s getting more attention than usual given the intense cost of living pressures people are facing.
That will be the main focus of this budget, with Ministers trying to strike a balance between easing cost pressures and not adding to inflation.
The Government looks set to break its own spending rules – going beyond the planned 5% increase in spending each year – a figure which was based on 2-3 per cent inflation.
It’s expected there will be a significant social welfare package – which could include an autumn double payment similar to the Christmas bonus.
Tax measures are also expected, with Fine Gael in particular looking for a new income tax band at 30%
While a repeat payment of the 200 euro electricity is also on the table.
Ministers will re-examine public transport fares as well.
However, Ministers Paschal Donohoe and Michael McGrath are also expected to point out potential threats to the Government’s bottom line, including unreliable corporate tax receipts.
