Ireland’s Budget 2027 preparations have entered their final phase, with Tánaiste and Minister for Finance Simon Harris telling the Budgetary Oversight Committee that the Government plans an overall package worth €8.5 billion. The statement, published on gov.ie on 23 September 2026, focused on economic resilience, household costs, housing, energy and responsible public finances.
Budget 2027 package includes €1.5bn in tax measures
Simon Harris said Budget 2027 will comprise €1.5 billion in new permanent tax measures and €7 billion in additional public spending. He said the Government’s intention is to help people benefit from employment and ease some of the pressures associated with everyday living.
The stated priorities include:
- Supporting workers through changes to taxation
- Reducing the cost of childcare and household energy
- Assisting retired people, carers and people with disabilities
- Building more homes and improving infrastructure delivery
- Strengthening public services while maintaining value for money
The Tánaiste stressed that final decisions had not yet been made and that the committee meeting was not being used to announce individual Budget measures.
Energy costs remain a major Budget 2027 concern
International uncertainty and disruption to energy supplies continue to shape the economic outlook. The statement noted annual inflation of 3.4% in August and referred to emerging energy bottlenecks linked to conflict in the Middle East.
The Government has already provided more than €1.3 billion in temporary energy supports. However, Harris acknowledged that no Government can fully shield households from higher global energy prices. Instead, the Government intends to consider measures that may return money to households through other tax and spending decisions.
Economic indicators remain relatively strong
According to the latest CSO figures cited in the statement, Modified Domestic Demand grew by just over 3% year-on-year during the first half of the year. The labour market was described as healthy, although employment growth may have slowed in recent quarters.
The unemployment rate has remained at or below 5% for four and a half years, representing the longest period of full employment in the history of the State, according to the Department of Finance briefing.
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Budget strategy will follow medium-term fiscal plan
Budget 2027 will be the first Budget delivered under the Government’s Medium-Term Fiscal and Structural Plan. Harris said the Government intends to continue running budget surpluses while directing part of corporation tax receipts into the Future Ireland Fund.
The Infrastructure, Climate and Nature Fund will also remain part of the Government’s savings approach. Investment in infrastructure was described as a form of long-term saving because it creates assets capable of generating future economic and social returns.
The Department of Finance will therefore have to balance immediate household pressures with fiscal sustainability. Other departments, including Housing, Local Government and Heritage, Health, Social Protection, Transport and Public Expenditure, are expected to feature in the wider delivery of the Government’s priorities.
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What happens next?
With Budget 2027 only 13 days away at the time of the statement, the Government’s attention will remain focused on finalising tax and spending decisions. The central message from the Tánaiste was that Ireland’s strong economic position should be reflected in people’s daily lives without weakening the public finances.
The Government’s summary phrase for the Budget is: “Work Hard, Get Ahead, Build More and Deliver Better.” The final Budget announcements will determine how those priorities translate into taxation, household supports, housing delivery and public investment.
Key takeaway
Budget 2027 is set to combine €1.5 billion in permanent tax measures with €7 billion in additional spending, while placing energy costs, housing and fiscal resilience at the centre of Ireland’s economic agenda.
Article/Image Courtesy: gov.ie
