Minister says sticking to 5% spending rule would pose risk to public services

Ministers have defended plans to breach the 5 per cent spending rule in Budget 2025, arguing that remaining within the limit would have posed a risk to public services.

Minister for Public Expenditure Paschal Donohoe said Ireland would not have the surpluses it has now if it had not set the 5 per cent rule, despite breaching it in several budgets, while Minister for Finance Jack Chambers said the rule had “anchored fiscal discipline within Government”.

“If we had stood at a 5 per cent level of spending growth, I think that presented risk to frontline public services in health, in supporting decisions we’ve already taken in social protection, in childcare and other areas,” Mr Chambers said.

“Obviously we (also) want to fulfil the obligations we have around the public pay deal.”

Mr Donohoe said that during an Oireachtas committee on the ministers’ plans for Budget 2025, “for the whole evening, we are being told that we’re not spending enough”.

Asked whether…

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