The Department of Finance will today publish its latest pre-Budget spending projections, setting the scene for Budget 2027.
The Summer Economic Statement will outline how much the Government expects to have available to spend next year and set the financial framework for Budget 2027.
A package worth €7.7 billion in additional spending is expected, although much of that will be absorbed by the cost of maintaining existing services and Budget 2026 measures, along with inflationary pressures.
Further demands on the public finances include the cost of a potential new public sector pay deal, an income tax package worth more than €1 billion, possible increases in social welfare rates, and the Government’s commitment to reducing childcare costs.
Despite strong tax receipts, the scope for major new initiatives is expected to be limited as many households continue to feel the pressure of the cost of living.
The Government will also have to contend with ongoing global uncertainty, including instability in the Middle East, making Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers’ first Budget together a delicate balancing act.
