Budget 2024 will be 'big' but must guard against inflation, says Donohoe

Cillian Sherlock, PA

Budget 2024 will be “big”, Minister for Public Expenditure Paschal Donohoe has said, but he warned of the Government’s precautionary approach to contributing towards inflation.

Mr Donohoe said he and Minister for Finance Michael McGrath want to help with the cost-of-living crisis but are keen not to “jeopardise the health and long-term resilience of our public finances”.

Asked if there would be another defined multi-billion cost-of-living package in the budget, Mr Donohoe said there would be measures in the announcement but they have yet to be decided.

He said that the summer economic statement indicated a spending increase of just over 6 per cent.

“We do point to a budget that will be big, but we are also very conscious of the need to avoid adding to inflationary pressure.”

The Minister said there is a “certain amount of money” available for taxation measures but warned the Government “will not be able to do everything”.

“We can help with the many pressures that are building on the cost of living.

“We really appreciate that for many at the moment, the rising interest rates and inflation continuing to go up places so much pressure on so many and we have looked to help and to respond back to the rising cost of living.”

However, Mr Donohoe reiterated a number of times that specific budgetary decisions have not yet been made and will not be taken until early October.

The Minister was speaking to reporters at Cabra Library in Dublin for the launch of the digital inclusion roadmap.

The goals for the roadmap are to make Ireland one of the most digitally inclusive states in the EU and ensure that everyone has the opportunity to use digital services, including public services, in a meaningful way.

Asked about whether he intended to stay within Irish politics or further his European career, the Eurogroup president said his appearance at Cabra Library was a “clear message” to his commitment to the communities of Dublin Central.

“I’m already in Europe, so to speak, as president of Eurogroup and I remain completely committed to my work here in Irish politics and I remain completely dedicated to how I can continue the work that I’ve begun and I will be forever grateful to the people of Dublin Central for the support they have been giving me now for nearly 20 years.”