Irish Government Unveils €10.5 Billion Pre-Election Budget

The Irish government announced a €10.5 billion pre-election budget including tax cuts and spending increases. It plans to use a €14 billion Apple tax windfall to upgrade infrastructure. Amid opposition criticism, the budget also provides one-off cost-of-living support payments, prioritizing long-term investments in housing, healthcare, and transport.

The Irish government has unveiled a pre-election budget of €10.5 billion, consisting of significant tax cuts and spending increases aimed at improving the nation's infrastructure. Prime Minister Simon Harris is expected to call an election by March, although most analysts predict a November date. Voters will start to reap benefits from the budget, funded by Europe's healthiest set of public finances.

As France announced spending cuts and tax hikes, Ireland allocated roughly €2,000 per citizen, marking itself as an outlier within the EU. This budget, the largest since the Celtic Tiger years, faced opposition claims of electioneering, as it broke the government's own spending growth rules for the third consecutive year.

Finance Minister Jack Chambers highlighted the budget's unique opportunity for future planning and growth. With corporate tax revenues from large U.S. multinationals fueling a budget surplus, Ireland is set for continued economic boom until 2030. The government plans to use Apple back taxes and proceeds from bank share sales to significantly upgrade water, electricity, and transport infrastructure.

The business community, represented by Ibec, has welcomed these prioritizations in resource allocation. Despite fast-falling inflation, the budget also includes €2.2 billion in cost-of-living support payments for the third year running. Harris dismissed claims of a return to mid-2000s giveaway budgets, emphasizing the government's long-term investment strategy and the creation of sovereign wealth and infrastructure funds.

(With inputs from agencies.)