The finance and public expenditure Ministers raised concerns privately about the nature of some expenditure elements of Tuesday’s Budget 2025 in advance of it being signed off, The Irish Times has learned.
In the days before the budget, the Coalition agreed to a €2.2 billion overall package of once-off measures, including a second double child benefit that added about €185 million on to the final cost, as well as signing off on energy credits worth about €200 million and a cost-of-business package worth €167 million.
It is understood that with inflation dropping lower this year, Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe cautioned privately about the growth in the once-off package in the final days, particularly around the child-benefit payments.
While the final package is lower than last year’s which totalled €2.7 billion in once-off tax and spending measures, it has been criticised by commentators and the Irish Fiscal Advisory Council.
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There are also said to have been concerns in the Coalition about the so-called baby boost, a triple payment of child benefit to all parents of newborns proposed by the Green Party, due to its untargeted nature, meaning it is paid regardless of income or means test. This payment is a permanent measure rather than a once-off and was agreed only on the final night of budget talks on Monday.
Three sources with knowledge of discussions said Mr Donohoe said some of the measures proposed could be seen as reminiscent of boom-era decisions.
Spokespersons for Mr Chambers and Mr Donohoe had no comment when contacted on Thursday.
Well-placed sources said that the package was conceived of originally as comprising spending measures of €1.2 billion, but that grew in recent weeks to €1.5 billion and beyond. Ultimately, it came to just under €2 billion. When taxation measures are added, the total package is €2.2 billion.
Green Party leader Roderic O’Gorman is said to have dug in on the baby boost in the final stages of negotiations after Coalition partners said it could not proceed in tandem with the once-off double payment of a double child benefit, with both of those measures landing before Christmas.
On Wednesday, eligibility for the baby boost was widened to ensure that parents of newborns in December will receive it, although they will miss out on the two payments of double child benefit, as this is only paid out for the first time in the month after a baby’s birth.
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