Ireland’s Finance Minister to Announce Tax Cuts and Cost-of-Living Support Amid Surplus

Ireland’s Finance Minister, Jack Chambers, is set to unveil a pre-election budget on Tuesday, featuring personal tax cuts and measures to alleviate the cost of living. The announcement comes amid speculation of a possible general election before Christmas. Despite a projected €25bn budget surplus, largely driven by a tax windfall from Apple, Chambers has stated that the surplus will be reserved for future investments and not directly influence the budget.

The coalition government, which had committed €1.4bn in tax measures and €6.9bn in new spending, faces scrutiny over its economic policies. The Irish Fiscal Advisory Council (IFAC) has warned that the planned 7% rise in public spending exceeds the government’s own limit of 5%, potentially overheating the economy. However, the government argues that inflation, which has fallen to below 2%, and rising employment levels support its spending plans.

Investment in Ireland’s infrastructure, particularly in energy, water, and housing, is expected to be a major focus of the budget. The government’s handling of the housing crisis remains a key target for the opposition party, Sinn Féin, which has seen a dip in opinion polls. Measures such as a tax on unused land zoned for housing are expected to be included to address the growing demand for housing development.

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