Economics and politics clash as government launches €6.4bn summer economic statement

Breaching its own 5 per cent spending rule once again is necessary in light of inflation, Michael McGrath and Paschal Donohoe maintain

Public Expenditure Minister Paschal Donohoe and Minister for Finance Michael McGrath as they deliver the government's Summer Economic Statement

“Credible, sensible and sustainable.” That was the verdict of Michael McGrath, the Minister for Finance, on the summer economic statement as he launched the €6.4 billion tax and spending parameters for Budget 2024 last week.

Detailing how the government would breach its own 5 per cent spending rule again in light of the inflationary environment, McGrath and Paschal Donohoe, the public expenditure minister, were adamant that a 6.1 per cent increase in core spending represented ...