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Bumper budgets cannot become the norm says Public Expenditure Minister

Bumper budgets cannot become the norm says Public Expenditure Minister
Michael McGrath, © PA Archive/PA Images

Minister for Public Expenditure Michael McGrath has said there is a risk that people will become accustomed to large 'give away' budgets which cannot become the norm.

Speaking after Budget 2023 was unveiled on Tuesday, Mr McGrath said the last two years' budgets were impacted by the Covid-19 pandemic, during which huge spending measures, such as business supports and the Pandemic Unemployment Payment, were needed to keep the economy afloat.

The cost-of-living crisis was the major challenge facing the latest budget, with many of the headline measures aimed at reducing costs for households and businesses.

Tuesday's €4 billion cost-of-living package contained a suite of once-off measures, including provision for a double social welfare payment, a reduction in the student contribution for those attending college, and a €600 energy credit for all households.

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However, McGrath stressed that such spending was necessitated by the extraordinary times currently facing the State and will not become a feature of the annual budget.

"Is there a risk that it builds expectation that that type of budgetary management can become the norm? Of course there's that risk," Mr McGrath said.

"We are very much alert to that, but that is why we have structured the budget the way we have.

"Certain payments are once-off in nature and will be made in the form of a lump sum and there is no commitment that they will be repeated."

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