The financial position for Government in framing the budget was exceptionally strong. A surplus of €25 billion is projected for 2024. At its disposal the Government had €14.1 billion from the Apple Tax ruling; €3.1 billion from the sale of AIB shares; and a €1.5 billion surplus in the National Training Fund.
In framing Budget 2025, some key priorities were evident:

• Impact of elevated inflation and higher interest rates on the cost of living.
• The need to relieve pressure on squeezed middle income earners.
• The increased cost of doing business for small businesses.
• The ongoing pressures on the housing market for both house purchasers and renters.
• The longer-term imperative of investment in infrastructure.
• A general election that must be held before 22nd March 2025.

As stated in the Summer Economic Statement, the core package in Budget 2025 is €8.3 billion, comprising €1.4 billion in taxation measures (personal income tax measures €1.6 billion) and core
expenditure of just under €6.9 billion. A cost-of-living package of €2.2 billion is in addition to this, giving a total budget package of €10.5 billion. The Government has laid out a longer-term Strategy for investment expenditure. €3 billion is being made available for infrastructure spending, in water infrastructure (€1 bln), housing (€1.25 bln), and electricity grid infrastructure (€750 mln). This money will be dispersed through the Land Development Agency (LDA); Eirgrid and ESB; and Uisce Eireann. In September, €4.3 billion was transferred into the Future Ireland Fund and €2 billion into the Infrastructure, Climate and Nature Fund. A further €4.1 billion will be transferred into the Future Ireland Fund next year and almost €2 billion to the Infrastructure, Climate and Nature Fund. By the end of 2025, more than €16 billion will have been transferred into both funds.

Budget 2025 is an expansionary package with a significant injection of fiscal stimulus into the economy.
The overall package will support economic activity in 2024, particularly consumer spending.

Link to Budget – Link 

How we help

As a Financial Planning / Advisor Firm in Louth we are available to discuss any and all queries that you may have in relation to the Budget Changes. Arrange a meeting by clicking this link to my Calendly Diary, emailing info@smartfinance.ie or calling 087 8144 104.

Smart Finance Life Planning Ltd., Bawntaaffe, Monasterboice, Drogheda, Co. Louth. A92 E2V3.