Committee on Budgetary Oversight has published its Pre-Budget 2025 Report

“Budget 2025 will be the last Budget of this Dáil and presents a unique opportunity for the Government to tackle the most critical areas for Irish citizens. Following the publication of the Well-Being Framework 2024, I believe that it is important that the economic policy decisions made in Budget 2025 seek to address the challenges identified in the Framework, align with people’s experiences and the continual improvement in their quality of life.

Throughout the last year the Committee examined a number of budgetary milestones including the Stability Programme Update, the Summer Economic Statement, the June Fiscal Assessment Report. The Committee also held pre-budget engagements with the Central Bank, the Economic and Social Research Institute, the Irish Fiscal Advisory Council, the Minister for Finance, and the Minister for Public Expenditure, National Development Plan Delivery and Reform.

This Report draws on this work, culminating in 15 observations and recommendations. These recommendations span a number of areas including the labour market, risks relating to the housing market and trade, EU fiscal rules, spending overruns, and one-off payments. On behalf of the Committee, I recommend that this Report be given due consideration by the Government as it finalises Budget 2025.

Ba mhaith leis an gCoiste buíochas a ghabháil leo siúd a thug cabhair dúinn lenár n-imscrúdú ar an ábhar seo, go háirithe na finnéithe go léir agus na hAirí Stáit.”

Read the full Pre-Budget 2025 Report

Observations and recommendations contained in the Report include:

• The Committee notes that there is likely to be once-off measures provided for in Budget 2025 but recommends that if and when once-off payments are to be discontinued, that a mechanism be put in place to restore the standard of living for low and middle-income households most affected by the withdrawal of once-off payments.

• The Committee notes with concern the potential impact of the ongoing housing shortages on the competitiveness of the economy, and further recognises that current housing targets fall short of structural housing demand.

• The Committee recommends that sufficient capital funding for housing be provided to meet current and future demands.

• The Committee recommends that in light of the likely need for increased investment in climate change mitigation, the design of and investment in the Infrastructure, Climate and Nature Fund be reviewed on a regular basis.
  
  
• The Committee notes the significant spending overruns in certain Departments in 2024 and recommends that the funding required for those departments be fully reflected in the allocations for 2025.
  
  
• The Committee also wishes to reiterate its previous recommendation, contained in both its Pre-Budget 2024 Report and Post-Budget 2024 report that “windfall capital investment” be included in core capital investment figures.