Last week, the Government published the Summer Economic Statement (SES) 2022. The document sets out the Government’s medium-term budgetary strategy and outlines the fiscal parameters within which discussions will take place ahead of Budget 2023.
In last year’s SES, the Government adopted a medium-term budgetary strategy based on public expenditure growth of 5 per cent per annum over the medium-term. The Government is now adapting the strategy – on a once off basis - in this year’s Summer Economic Statement. To protect public services and incomes, core spending will now increase by 6.5 per cent next year. This is because of the less benign inflationary environment, and the impact of higher energy prices on the most vulnerable groups in our community.
Budget 2023 will provide an overall package of €6.7 billion, representing additional public spending of €5.65 billion and taxation measures amounting to €1.05 billion (an increase of €2.2 billion against what was originally budgeted). The main purpose of this year’s budget will be to address the rising cost of living in the country.
Commenting on the document, Minister for Public Expenditure and Reform Michael McGrath said:
"Today’s publication of the Summer Economic Statement outlines the government’s budgetary strategy which will seek to protect public services, allow us to introduce further measures to address the cost of living pressures in the autumn, and at same time maintain fiscally sustainable expenditure into the medium term.”