Europe Asia News

Ireland’s Deputy Prime Minister Harris reviewed the current state of the country’s economy and the approach to the 2027 budget in an assessment article he published.

Harris said that according to Treasury data, total tax revenues had reached 59.6 billion euros by the end of July. He noted that tax revenues were up 3.4 billion euros, or 6 percent, compared with the same period last year, while income tax receipts rose by 7.5 percent, Value Added Tax (VAT) revenues by 9.7 percent and corporate tax revenues by 4.7 percent.

Harris said the Irish economy continues to grow, employment remains strong and the public finances are also in a strong position.

Harris said economic strength should translate into greater economic resilience for households and that governments should use available resources for public services and infrastructure investment.

Stressing that the public finances should be managed sustainably, Harris said budget surpluses should be delivered when conditions allow and investment should be made in the public services and infrastructure that a growing population and economy will need.

Harris said fiscal measures implemented by the government in response to rising global oil and natural gas prices caused by the conflict in the Middle East had helped keep inflation under control and ease pressure on fuel prices.

Harris said the 2027 budget should strike a balance between allowing workers to keep a larger share of their income, investing in essential public services and critical infrastructure, and strengthening the country’s resilience to future economic shocks. He said a tax package aimed at rewarding work would be prepared.

Harris also said childcare services should be made more affordable and accessible, savers should be able to benefit more from their savings, and investment in housing, health, education, transport, energy and water infrastructure should continue.

Harris said the 2027 budget would not be able to solve every problem in a short period, but would be one of the steps toward building a country where work is rewarded and people have greater opportunities to secure their economic future.