Budget 2021 focused on establishing 'safe' finances, minister says

The government won't 'jeopardise' Ireland's finances, said the Minister for Finance, Paschal Donohoe TD. File Picture: Gareth Chaney/Collins

Next week's budget will see changes aimed at the state having "safe" national finances again, the finance minister has said.

Speaking on Newstalk Breakfast, Paschal Donohoe said Budget 2021, which will be published on Tuesday, seeks to get the balance right between the country's future financial position and provide the necessary supports for those out of work due to the pandemic.

Mr Donohoe noted that although the country is in recession, there is a significant difference between the current state of the country's economic outlook and the financial crash and that government spending will not be cut. 

Targeted Change

"We are making expenditure commitments, but we are doing that via the Government at precisely the point that private sector employment, demand and income has collapsed," Mr Donohoe said.

"We are stepping in for a limited period of time.

"What you will see in the Budget is a very targeted change in the level of borrowing for next year, to get us on the path to how we can have national finances that are safe again.

"The last four or five budgets have been focused on ensuring Ireland was worthy of credit again.

"I can assure you I won’t do anything to jeopardise that again, but I have to get the balance right in responding back to the issue that we still have over 200,000 that don’t have a job today that were in a job in March."