Overview
- The Government published its Summer Economic Statement on Wednesday and confirmed Budget 2027 will be held on 6 October, formally starting the budget process.
- The statement outlines an €8.5bn headline package made up of about €7bn in additional spending and €1.5bn reserved for tax measures inside a projected total expenditure of roughly €125bn.
- Ministers signalled the €1.5bn tax headroom will be largely used on income tax changes to 'reward work', likely through indexing bands or raising the entry point to the 40% rate to protect take‑home pay.
- The Irish Fiscal Advisory Council warned the Government shows 'poor planning and budgeting', estimating current‑year expenditure is about €850m higher than official estimates and that overruns could reduce fiscal space in 2027.
- Opposition parties and social advocates said the package lacks targeted supports for low‑income households while business groups urged narrowly focused tax‑band fixes; detailed measures will be decided ahead of the 6 October Budget.