Government plans spending increases with new 6% spending rule

James Cox

The Government has committed to limiting the annual increase in public spending to 6 per cent a year over the course of the next five budgets.

Minister for Finance Simon Harris called the Government’s Medium Term Fiscal and Structural Plan a “fundamental change” in Irish budgetary policy.

The plan outlines that there will be spending increases for the next five budgets.

There will be a 7.2 per cent increase in budget spending in 2026, while that spending will then slightly decline in the following years.

It means there will be an average annual spending increase of 6 per cent up until 2030.

Much of the spending increases will be focused on infrastructure rather than day to day spending.

The Medium Term Fiscal and Structural Plan is a requirement under EU law and will be submitted to the European Commission in the New Year.

It is expected to be formally adopted by EU finance ministers in March.