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Dáil

Written answer

Departmental Policies

35. Deputy Eamon Scanlon asked the Tánaiste and Minister for Finance if he plans to further increase the Government expenditure ceiling for 2026; and if he will make a statement on the matter. [40346/26]

Comment on this

38. Deputy Paul Murphy asked the Tánaiste and Minister for Finance his plans to assist people with the rising cost of living in Budget 2027; and if he will make a statement on the matter. [48191/26]

Comment on this

52. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance the measures his Department will take to address the rising cost-of-living; and if he will make a statement on the matter. [46885/26]

Comment on this
Simon Harris Tánaiste and Minister for Finance Fine Gael

I propose to take Questions Nos. 35, 38 and 52 together.

Government is acutely aware of the impact that the energy prick shock has had on households and businesses. We have acted to reduce this burden, introducing two packages of supports worth over €750 million.

The first package of supports, introduced at the end of March, reduced the tax on fuel, enhanced the diesel rebate scheme and extended the fuel allowance season by an additional four weeks.

The second package of supports. introduced in April, further cut the tax on fuel bringing the total reduction in diesel to 32 cent per litre, 27 cent per litre for petrol and 7.4 cent per litre of green diesel.

The scheduled increase in carbon tax has been delayed to later in the year, and support schemes targeted at the agricultural and transportation sectors have been introduced: the Road Transporters Support Scheme will provide direct payments to haulage and coach operators, while the Fuel Subsidy Support Scheme will assist farmers, agricultural contractors and fishers.

We have shown that we are ready to intervene and provide support when appropriate, but we have also been clear that the best way to provide support is through permanent, targeted measures introduced as part of the annual budgetary process, instead of repeated in-year 'fiscal events'.

Running surpluses has given us the scope to respond flexibly and decisively to the energy price shock. It is essential that we keep our public finances on a sustainable path so that we retain the fiscal resources to respond as needed to future shocks.

The expenditure ceiling this year has been revised upward: this was in part to fund the temporary energy price supports, and partly to address pressures in the education sector.

Ireland’s Medium-Term Fiscal & Structural Plan was designed to give us the flexibility to adapt to changing circumstances: however, I am committed to maintaining an approach to overall budgetary policy that remains sustainable over the medium-term.

That is why Minister Chambers and I have made clear that next year’s expenditure ceiling will remain fixed at €125.5 billion.

Comment on this