Taoiseach discounts mini budget talk saying 'bulk' of surplus has already been allocated

Taoiseach Micheal Martin also noted there is 'concern overall in terms of the impact of AI on jobs' and that he is examining proposals on how AI's impact on the workforce can be identified. Photo: Cillian Sherlock/PA

Taoiseach Micheál Martin has warned that the “bulk” of the Government’s budget surplus has already been accounted for, and the money is not “waiting there to be used”.

Earlier this week, the Department of Finance confirmed that it was projecting the Government’s surplus would be €9.2bn, up from previous projections of €5bn. However, it also predicted an Exchequer deficit of €1.2bn.

The opposition this week called for a mini budget to be announced as the cost of living continues to dominate the political agenda.

However, speaking in Cyprus at an informal European Council meeting, the Taoiseach said there had been a “lot of pessimism” amongst leaders about the medium-term impact of the war in Iran on supply and on prices.

Mr Martin said the Department of Finance has done modelling for how badly Ireland could be affected, and that, even in the worst-case scenario, economic growth is expected to continue.

However, he said Ireland will not be immune from “downgrading of economic growth across the world”.

“In terms of the surplus, the bulk of our surplus, all of our surplus, is currently being invested in the Future Ireland fund and in the Infrastructure and Nature fund,” the Taoiseach said.

“It's not as if the money is waiting there to be used. It's being used already in terms of key investments in infrastructure.

“But we are in a better position than others in terms of our financial situation, and obviously, we will factor all of that into the plans for the next budget."

The Taoiseach also said he does not “anticipate” there being a “budget before the budget” on October 6.

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Separately, following an announcement by Meta that it would be cutting its workforce, Mr Martin noted there is “concern overall in terms of the impact of AI on jobs” and that he is examining proposals on how AI's impact on the workforce can be identified.

He added: “We should be mindful of the fact that there could be significant upheaval in the jobs market over the next decade, and it could be earlier, rather than the latter half of that decade.”

• Louise Burne is a political correspondent with the Irish Examiner