In a recent statement, Ireland’s Minister for Finance, Jack Chambers, expressed his support for the continuation of a budget rule aimed at capping increases in public spending. However, he emphasized the need for the rule to accommodate increased investment in capital projects.
Since its introduction in 2021, the government has maintained a guideline limiting the annual growth of combined current and capital spending to 5%. Yet, this rule has been exceeded for the past three years, with the recent budget for 2025 indicating a total spending increase of 6.9%.
With a general election required in Ireland by March, analysts anticipate that the coalition government will likely call for elections by late November. One of the initial priorities for the incoming administration will be to develop a medium-term fiscal plan in accordance with the European Union’s updated fiscal framework.
“I believe there must be an anchor in place to ensure fiscal discipline,” Chambers remarked to reporters, though he did not specify how the revised spending rule might be structured.
He added, “It is essential to moderate current spending. While we cannot sustain high levels of both current and capital expenditure, our primary focus must be on ushering in a new era of capital investment for Ireland to effectively address existing infrastructure gaps.”
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