Budget surplus will allow tax package for middle earners, Varadkar tells Fine Gael

The party leader also said there will be a welfare and pension package which 'will hopefully be similar to last year'

Taoiseach Leo Varadkar said that with the expected €26bn budget surplus, this year's and next year's budgets will have three main aspects: spending, a tax package, and setting finance aside. Picture: Brian Lawless/PA

Ireland's budgetary surplus will be used to fund additional spending and a tax package aimed at middle-income earners and to put money into a rainy day fund, Taoiseach Leo Varadkar has told his party.

At a private party meeting, Mr Varadkar said that with the expected €26bn budget surplus, this year's and next year's budgets will have three main aspects: spending, a tax package, and setting finance aside.