National debt 'not spoken about enough' as government deliberate Budget 2024 

"We don't talk about national debt enough because it is a real burden on not just this generation but future ones to come," Mr McGrath told the Committee. Photo: Sasko Lazarov/RollingNews.ie

Ireland's national debt and its impact on future generations is not being spoken about enough, an Oireachtas committee has heard.

Addressing the Budgetary Oversight Committee on Wednesday, Finance Minister, Michael McGrath said current forecasts predict the general government debt to be €223.5bn, with net debt around €40bn less once cash, reserves and other assets are accounted for. 

The Finance Minister also quoted a debt ratio of 79% when compared to Gross National Income, and of 40% when compared to Gross Domestic Product.

"We don't talk about national debt enough because it is a real burden on not just this generation but future ones to come," Mr McGrath told the Committee. "At the headline level, our gross debt on a per capita basis is high in the developed world."

In 2023, close to €3.5bn will be paid on interest alone to service the national debt, with the Finance Minister adding the government wanted to make maximum use of its projected budget surpluses.

Publishing its the Summer Economic Statement last week, Minister McGrath and Public Expenditure Minister Paschal Donohoe outlined the broad parameters for Budget 2024, announcing an overall package of €6.4bn which includes €5.25bn in extra expenditure and an additional tax package of €1.15bn.

The Finance Minster also noted his intentions to breach a key government rule, citing continued inflation pressures in his decision to exceed the 5% growth ceiling on expenditure.

Mr McGrath said that the Government listens "very carefully" to concerns by the Irish Fiscal Advisory Council (Ifac) and other advisers and would be subject to questioning by Oireachtas Budget Oversight Committee, but insisted that Government has "a wider mandate to deliver on societal objectives."

Speaking at the Oireachtas Committee, Minister McGrath also noted the "fortunate position," the government is in to be running a significant surplus, despite falling purchasing power arising from sticky core inflation and the "unsustainable" growth in corporate tax, half of which is considered windfall. 

"One of the considerations we are taking when looking at projected surpluses is what can we do to make our debt more sustainable," Mr McGrath told the Committee.