The Summer Economic Statement (SES) sets an expenditure ceiling of €88.2 billion for next year for core public expenditure and provides for a continuation of some temporary supports of €6.8 billion. The core budget package for 2022 is €4.7 billion of which €500 million are tax measures.

The SES states that a deficit of €20.3 billion (9.4 percent of modified gross national income) is in prospect for this year. Expenditure ceilings set out in the SES project that the headline deficit will be approximately 2.8 percent of modified gross national income or 1.5 percent of GDP by the mid-part of the decade. Annual expenditure growth has been set at 5 percent, broadly in line with the trend growth rate of the economy.

In a press release, Minister Donohoe said that a key priority for the Government will be returning the public finances to a sustainable trajectory. The SES details that significant expenditure pressures in financing the transition to carbon-neutrality and the transition to a digitised economy are also being taken into account. The Minister also noted that age-related public expenditure will need to rise considerably simply to maintain service at existing levels.