Irish government now expects larger €9bn surplus in 2026
This week the Department of Finance revised up its projection for the government surplus to €9.2bn (2.5% of GNI*) in 2026, close to double the €5.1bn forecast in December once the cost of recent energy price supports and other spending is excluded. The explanation is €4.4bn of lower-than-expected borrowing (or larger surpluses) in semi-state bodies, extra-budgetary funds and local government in 2026.
The upshot is that Ireland’s public finances now look in a substantially better position, providing a welcome safety buffer should further spending on energy supports be required, or other expenditure overruns emerge, this year. The Department of Finance is now forecasting a surplus of €9bn in 2027 (2.4% of GNI*) with the debt/GNI* ratio falling to 56% next year.
Read the Weekly in Full Here: