Government spending far exceeds budget 2025 plan, warns fiscal watchdog

Ireland’s fiscal watchdog says government spending has surged 6% this year, far above Budget 2025 targets, warning of hidden deficits

Minister for public expenditure Jack Chambers said spending increases are in line with the amount profiled by departments to be spent at this stage in the year. Picture: Sam Boal/Collins Photos

The Government is spending money much faster this year than was planned, with Ireland’s fiscal watchdog blaming poor budgeting.

In an assessment of the State’s financial health, the Irish Fiscal Advisory Council (IFAC) said spending has increased by 6% so far this year, well above the 1.4% implied by Budget 2025. IFAC said the rapid spending is because earlier overruns were not properly built into the forecasts, and Government estimates were “simply not credible”.