Dáil Éireann Debate, Thursday - 8 September 2022
330. Deputy Eoin Ó Broin asked the Minister for Finance if budget 2023 will include a package of temporary financial supports for independent food retailers and small supermarkets in order to assist such retailers in meeting increased energy costs. [42256/22]
Amharc ar fhreagraGovernment has acted swiftly and on a significant scale to ease the burden of the rising cost of living. Since Budget 2022, support of approximately €2.4 billion has been provided to address the cost of living challenge.
The majority of these measures have been targeted at households but Government has also introduced support for businesses, including the reduced rate of VAT on electricity and gas and the reduced excise duty on fuels.
As I have said on many occasions, we must recognise that the current level of inflation is primarily driven by global pressures. It is not within the power of any Government to fully offset the impact.
Furthermore, we must be ensure that fiscal policy itself does not become part of the problem. Inappropriate or poorly designed fiscal policy would backfire, adding to inflation and jeopardising the sustainability of our public finances. As such, Government policy will consist of measures that are temporary and targeted at those most in need.
Fiscal policy must strike a delicate balance between taking the necessary action today and ensuring that our public finances remain on a sustainable pathway. In the Summer Economic Statement published in July, Government outlined its updated medium-term budgetary strategy. In recognition of the changed economic environment, the Budget package this year has been increased, while for later years the strategy remains unchanged.
I have said that Budget 2023 will be a ‘cost of living’ Budget, and an overall package of €6.7 billion has been provided for. A package of this size strikes the right balance between intervening to ease the burden of the cost of living challenge today while continuing to return the public finances to a stable position, without exacerbating inflationary pressures.
This Government has demonstrated that it will provide fiscal support to businesses as needed. As the Deputy will appreciate, however, it would not be appropriate for me to speculate on specific policy decisions in advance of Budget Day.
