Budget 2025: What will the Government do with the €14bn Apple tax windfall? 

Tax to be invested in water, electricity, transport and housing, Public Expenditure Minister Paschal Donohoe said

The €14bn Apple tax windfall will be invested in water, electricity, transport and housing to 'ensure the further development of our society'.

The €14bn Apple tax windfall will be invested in water, electricity, transport and housing to "ensure the further development of our society", Public Expenditure Minister Paschal Donohoe has told the Dáil in his budget speech.

While the Apple tax pot is significant, Mr Donohoe warned this money was a "one-off in nature".

"It is vital therefore, that we maximise the potential of these funds, delivering the best possible outcome for the longer term".

He said investing in infrastructure, such as improving the national grid and our water system would "support the needs of our people, assist in growing our economy and help in meeting our climate and nature goals".

Mr Donohoe said officials would now begin work on developing an investment framework for the use of these funds, ensuring "coordination with existing investments being made through the National Development Plan".

Earlier, Finance Minister Jack Chambers said “there are real vulnerabilities” in Ireland’s public finances. He said the State’s reliance on corporation taxes from multinationals must be “kept in mind” when putting a budget together.

“As I have said many times before, we must not use these potentially transient receipts to fund permanent expenditure measures.” 

He said there was a general Government surplus of €23.7bn this year, and €9.7bn expected next year, excluding the Apple tax windfall.

Separately, Mr Chambers told the Dáil the money gained through the State's sale of shares in AIB has "presented us with an immediate opportunity" to invest in capital spending in the coming years.

He confirmed the Government was making €3bn available for infrastructure spending.

Mr Chambers announced €1bn in funding to Irish Water, which will go towards capital projects related to remedial action lists, connections for new housing and addressing urban wastewater pressures.

Turning to electricity grid infrastructure, Mr Chambers announced €750m for upgrades, which will include capital investment in both the on- and off-shore grid.

"Providing a secure, sustainable source of energy, will encourage further industrial investment, facilitate the progression of the digital economy, enable decarbonisation and enhance our competitiveness," he said.