Budget 2025: | Irish Independent

It made for good political theater and had the irresistible advantage of attracting public goodwill that could be cashed in and converted into votes.

But a spate of leaks has raised high public expectations that are likely to be fulfilled. The state is sitting on such a bonanza that the Fiscal Advisory Council’s (FAC) appeals for caution are likely to be lost in the stampede aimed at loosening the state’s coffers.

Even before Apple’s $14 billion gold verdict came down, the 2025 budget promised to be big. The government has already launched a planned package of permanent and temporary measures worth over 10 billion euros. The temptation to use this as an electoral springboard must be overwhelming.

There is no evidence that the Cabinet took up the views of William McChesney Martin, chairman of the Federal Reserve Board of Governors in 1955. He famously said, “The Federal Reserve is in the position of regulator that ordered the removal of the punch bowl” just as the party was really heating up.”

If there is such a supervisor in the cabinet, they have their heads down. But the FAC’s concerns are rooted in reality. With the economy already running at full speed, there is a risk of overheating from additional fuel. There is also a fear that we may have developed an unhealthy dependence on massive corporate growth and that if the harvest fails, the pantry could be left empty.

The ESRI takes a broader view with one caveat: the government must not shy away from introducing residential property tax.

The think tank sees this as the only effective tool available to policymakers to make progress in reducing housing costs. Otherwise, she believes the current spending level is sustainable.

After the crash, the state was unable to spend money for several years. In view of the rapidly growing population and the dramatic increase in production, she advocates a corresponding easing of the state budget.

Provided that spending is proportionate to national production and within reason, we need not worry too much. Furthermore, the workers who produced the surplus can rightly expect to benefit from it. However, it is also important to ensure that those who need the most get the best.

The most recently published number of homeless people reminds us that too many are still excluded from our success story. The number of children, families, pensioners and young adults living in state emergency shelters is now 14,486 – and that doesn’t include all the homeless.

A budget that is viewed as unfair cannot expect to be accepted as balanced.