Budget bakes in billions of euro in reserve should energy crisis deepen

Minister Donohoe also detailed the huge increase in tax revenues filling the exchequer coffers this year

The projected budget surplus next year and the €6bn set aside meant that the Government would have a total of €12bn by the end of next year if needed. Photo Leah Farrell/RollingNews.ie

The Government has baked in reserves to fund significant measures should the €4bn earmarked for household and business utility bills fall short this winter, leading economists have predicted.

It comes after Finance Minister Paschal Donohoe surprised economists by announcing that inflation would remain at an extremely elevated level of over 7% next year following the rate rocketing to 8.5% this year.