Budget 2025: Government announces €8.3bn package

THE Government has announced that Budget 2025 will deliver an overall package of €8.3 billion when presented to Dáil Éireann on October 1.

On Tuesday morning, Minister for Finance Jack Chambers TD and the Minister for Public Expenditure, Paschal Donohoe TD published the Government’s Summer Economic Statement following agreement by Cabinet.

An overall package of €8.3 billion is being made available, with total spending increasing by 6.9 per cent in 2025.

Additional public spending will amount to €6.9 billion, Government said. 

On the taxation side, a package of €1.4bn has been allocated so that Government has the ‘scope to adjust tax credits and bands to ensure workers are not paying a higher rate of tax because of higher wages’.

The Government has also approved an additional €1.5bn in funding for the health service.

According to Minister O’Donohoe: “A key element of the overall expenditure amount for 2025 is agreement in relation to the level of Health funding for 2025.

“Taking into account demands for better quality health care, the complexity of providing health services, the legacy of a post pandemic and heightened inflationary environment, significant additional funding is being provided for the Department of Health”.

Just over €90bn is being provided for current expenditure, an increase of 6.4 per cent on 2024, with €14.5bn for capital spending, an increase of €1.4bn, to deliver the National Development Plan (NDP).

Speaking on Tuesday, Finance Minister, Jack Chambers TD, said: “There remains the continuing need to improve public services and infrastructure, particularly in the context of a growing population and economy.

“The Government has adapted its fiscal strategy to take account of this, to support the continued delivery of better healthcare services as well as accommodate higher capital spending.

“On this basis, an overall package of €8.30bn is being made available, consistent with expenditure growth of 6.9 per cent.”

He added: “It is important to stress that in the provision of additional public services, additional financial resources must go hand-in-hand with mechanisms that improve public service delivery.

“Value-for-money considerations must be to the fore and an increased focus on efficiency and productivity is needed.”

Read the full Summer Economic Statement on Gov.ie HERE.