WEALTH June 16, 2026 0 Comments

State Spending Skyrockets 75% Since Covid—Is This Surge a Secret Ticking Time Bomb for Your Wallet?

Can we really keep spending like there’s no tomorrow while trying to keep the budget balanced? The Taoiseach dropped a bombshell: State spending has surged by a whopping 75% since the pandemic, just as Budget 2027 talks are heating up. It’s a tricky tightrope walk between meeting the urgent needs of a growing society and not letting the public finances spiral out of control. Meanwhile, Tánaiste Simon Harris hinted the government might bump up the income threshold for the higher tax rate—aiming to make sure wage gains actually stick in people’s pockets. But with watchdogs like the Irish Fiscal Advisory Council waving red flags over current outlays, every euro spent feels like both a lifeline and a liability. From childcare costs that squeeze families to a pressing call for more private sector involvement in housing, the stakes couldn’t be higher. So, how does a nation spend smart when every need feels more urgent than ever? LEARN MORE

Spending by the State has risen 75% since the pandemic, the Taoiseach warned, as budgetary negotiations got underway in earnest with the National Economic Dialogue, writes Brian Mahon.

It comes as Tánaiste Simon Harris said the Government is considering raising the level at which workers enter the higher rate of tax in the budget.

The Government has been criticised in the past week by the Irish Fiscal Advisory Council, the State’s spending watchdog, over public outlay.

Taoiseach Micheál Martin yesterday admitted spending had risen by three-quarters.

He said: “As we consider Budget 2027, the starting point has to be that we must manage our resources in a fiscally sustainable way.

“Our corporate tax base is highly concentrated and receipts are volatile. Our voted expenditure has increased by 75% since the pandemic.

“With all this in mind, we are continuing to target budget surpluses and keep our public finances on a sustainable path.

“I am very conscious about debates about the level of increase in spending.

“But it important to respect the fact much of the recent increases in expenditure reflect the needs of a growing society and economy.”

Mr Harris said: “Successive budgets have increased the point at which workers enter the higher rate of income tax, helping people keep more of what they earn.

“As we prepare Budget 2027, we will consider further increases in that threshold as a practical way of ensuring wage growth translates into higher take-home pay.”

Mr Harris also flagged the cost of childcare as a priority.

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spending — The Government has been criticised in the past week by the Irish Fiscal Advisory Council, the State’s spending watchdog, over public outlay.

“When childcare is expensive, parents – particularly mothers – can face difficult choices between remaining in work and providing care at home,” he said.

The Taoiseach also said there was a greater need for the private sector to get involved in house building.