Dáil Éireann Debate, Thursday - 8 September 2022
379. Deputy Catherine Connolly asked the Minister for Finance his plans to assist those earning between €20,000 and €30,000 to deal with the cost-of-living crisis; and if he will make a statement on the matter. [43015/22]
Amharc ar fhreagraThe Government is acutely aware of the cost pressures facing taxpayers, especially the increase in fuel and other energy prices. Government has acted swiftly, and frequently, to address the cost of living issue. Since Budget 2022, measures of approximately €2.4 billion have been introduced to ease the burden.
However, it is important to recognise the reality that the current inflationary environment is, primarily, driven by global pressures. As such Government cannot fully ease the burden of the rising cost of living.
It is also essential that fiscal policy itself does not become part of the problem: inappropriate policy could lead to second-round effects, counterproductively adding to inflation and increasing the vulnerability of the public finances. Therefore, Government policy will focus on temporary and targeted measures, aimed at those most in need.
The Government must also strike the balance between intervening today and keeping our public finances on a positive trajectory in the future. The need for a credible fiscal strategy for rebuilding fiscal buffers takes on an increased urgency in the context of multiple challenges facing the public finances including elevated levels of public debt, rising borrowing costs and significant medium-term expenditure pressures.
In the Summer Economic Statement, the Government adapted its budgetary strategy for next year on a once-off basis to take into account the much less benign inflationary environment. Reflecting this, Budget 2023 will be a ‘cost of living’ Budget, predominately focused on helping to ease the burden of inflation. Budget 2023 will provide for an overall package of €6.7 billion; this has been calibrated to balance the need to provide further support with the need to avoid adding to inflationary pressures. As the Deputy will appreciate, it would not be appropriate for me to speculate on policy decisions in advance of Budget Day.
