The Committee on Budgetary Oversight, established to enhance the role of the Oireachtas in the budgetary formation process, has published its Post-Budget 2026 Report.
“The Committee’s post‑Budget review highlights the need for a resilient and transparent fiscal framework amid growing geopolitical and economic uncertainty. The report warns that Budget 2026 is expansionary and pro-cyclical at a time of near full employment and capacity constraints, risking overheating and undermining economic resilience. It stresses that Ireland’s heavy reliance on windfall corporation tax receipts leaves the public finances exposed, and calls for a broader, more sustainable tax base.”
“Key concerns raised:
- Stakeholders including NERI, ESRI and the Irish Fiscal Advisory Council (IFAC) warned that net spending increases of €9.4 billion, well above a sustainable growth range, risk adding to inflationary pressures rather than dampening them.
- IFAC and the Central Bank of Ireland highlighted that headline surpluses mask an underlying deficit once windfall corporation taxes are excluded, and that recent policy has provided stimulus to an already tight labour market.
- Social Justice Ireland and others welcomed some measures such as increases in child support payments and the minimum wage but warned that low-income households and welfare recipients remain worse off in real terms without adequate benchmarking to average earnings.
- Business representatives from Ibec acknowledged positives such as extra capital investment, higher R&D tax credits and lower VAT for certain sectors but warned that cumulative labour cost increases and the absence of supports like PRSI offsets and Skillnet funding are putting pressure on firms, particularly SMEs and low‑margin sectors.”
The report outlines recommendations to strengthen Ireland’s fiscal architecture and promote long‑term economic stability and social wellbeing.
The report is available here.