The Minister for Finance, Michael McGrath TD, welcomes the publication by the European Commission of its Opinion on Ireland’s Draft Budget 2024.
Overall, the Commission is of the opinion that Ireland’s DBP is in line with the recommendations adopted by the Council in July which, amongst others, recommended Ireland to maintain a sound fiscal position in 2024.
According to the Commission, Ireland’s structural balance is projected to improve from -0.2 per cent of GDP in 2023 to 0.1 per cent in 2024. As such, Ireland will remain well above its medium-term budgetary objective (MTO) of -0.5 per cent of GDP.
Minister McGrath said about the Opinion on Ireland’s Draft Budget 2024, “I welcome the Commission’s opinion that Ireland’s Draft Budgetary Plan is in line with the fiscal guidance provided by the European Council in July’s Country-Specific Recommendations. The Commission’s findings underline that budgetary policy must not lose sight of the importance of a prudent approach over the medium-term – we must ensure fiscal sustainability so that we are best placed to react to the highly uncertain and evolving environment.”
“We face significant challenges through the requirement to decarbonise our economy and the need to manage the digital transition. At the same time, publications by my Department have shown that the growth rate is set to slow over the medium- and longer-term, driven by demographic changes.”
“Such developments show the importance of planning for the future now. With this in mind, the Government announced the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund as part of last month’s Budget. These important policy instruments will help current and future generations address the fundamental structural challenges we face and work is intensifying on bringing these initiative to fruition.”
