Chancellor of the Exchequer Jack Chambers confirmed today (Tuesday 9 July) that the 2025 Budget will deliver €1.4 billion in tax cuts and also set aside €6.9 billion for “extra government spending”.

The budget for the general election, due to be presented in the Dáil on October 1 this year, will raise a total of €8.3 billion, according to Minister Chambers and the Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe.

The government today published the Economic Summer Statement, which was approved by the cabinet this morning. It sets out the priorities for spending.

The statement said the latest data indicate that “the worst energy price shock has passed and inflation has returned to levels consistent with price stability”.

It also states that Budget 2025 will be the government’s “fifth and final financial statement” and that it “will be prepared against the backdrop of a supply-constrained domestic economy and an international economy undergoing major structural changes.”

Budget 2025

According to Minister Chambers, the economy is currently in a reasonably good state, but the “external outlook remains very uncertain”.

“There remains a continuing need to improve public services and infrastructure, especially in the context of a growing population and economy.

“The government has adjusted its fiscal strategy to take this into account, to support the continued delivery of improved health care services and to accommodate higher capital expenditure,” the minister added.

Meanwhile, the Minister for Public Expenditure also indicated that the Summer Economic Statement includes a total expenditure package for the 2025 budget of €105.4 billion.

Minister Donohoe said a key element of this package is “an agreement on the level of health funding for 2025”.

“After a significant effort, my officials and I have reached an agreement with the Department of Health and the HSE that will provide an additional €1.5 billion for the health sector by 2024.

“I have also agreed to the fact that an additional €1.2 billion will be made available in 2025 for current service costs,” the minister added.