The purpose is, after all, to make decisions, not just raise more questions.
One expects budgetary discussions to be drawn out, but this year’s seem to be being scrutinised at a subatomic level – and that may be no bad thing.
There was nothing coincidental about the meeting of the Government’s Cabinet Committee on Health on the same day the three Coalition leaders were set to have crunch talks on spending targets.
An estimated overrun of €1bn in Health Minister Stephen Donnelly’s department is likely to inform much of the thinking. You can’t blame Mr Donnelly alone for the fact that health has swallowed up billions in extra funds. Lack of accountability and oversight have dogged the department for years, but inflation and population increases have pushed capacity to breaking point. It has never been deemed politically expedient to implement the kind of radical reform that might actually make a difference.
The Department of Public Expenditure feels further forbearance would be foolish, as costs have to come down. Whether the Coalition is prepared to pit financial prudence against the prospect of a backlash, should an election be called next year, remains to be seen. Our population is getting older and demands on the health services can only intensify.
Yet health cannot expect a free pass. The cost of living is also still biting for families. The pressure for the type of largesse for one-off measures we saw last year remains.
Inflation may have eased somewhat, but for those struggling hardest there has been little respite. What scope that there is, must be focused on them.
For now, as always, Budget 2024 remains more snow globe than crystal ball. Speculation is continuous, but views remain clouded. Those given to reading the tea leaves suggest welfare rises between €10 and €12 are on the way, as well as some energy credits worth up to €150.
The Greens might have something to say about any subsidy that results in using more fossil fuels.
Obviously, a tax package will also be included. The Coalition has again benefited extraordinarily from revenues which have been substantially higher than we might have hoped. It is important to note that the cornucopia in corporation tax receipts is not linked to domestic activity. They are mostly driven by US multinationals and therefore can not be relied on indefinitely. All the more reason, therefore, to address areas of inefficiency, waste and profligacy.
We have a record jobs market and an unprecedented surplus. With such a fortunate confluence of circumstances comes greater responsibility to make the most of our opportunities, and not squander gains that can’t be taken for granted. With inflation still so stubbornly high, temptation toward an undisciplined spending spree in an overheated environment must be resisted
The purpose is, after all, to make decisions, not just raise more questions.
One expects budgetary discussions to be drawn out, but this year’s seem to be receiving intense scrutiny – and that may be a positive thing.
There was nothing coincidental about the meeting of the Government’s Cabinet Committee on Health on the same day the three Coalition leaders were scheduled to have crucial talks on spending targets.
An estimated overrun of €1bn in Health Minister Stephen Donnelly’s department is likely to heavily influence the discussions. However, the blame cannot solely be placed on Mr Donnelly for the substantial extra funds spent on healthcare. The department has long been plagued by a lack of accountability and oversight, but rising inflation and population have stretched its capacity to breaking point. Implementing significant reforms that could make a real difference has never been deemed politically expedient.
The Department of Public Expenditure believes that further patience would be unwise, as costs need to be reduced. Whether the Coalition is willing to prioritize financial prudence over potential backlash in the event of an upcoming election remains uncertain. Our population is aging, and the demands on healthcare services are only expected to increase.
However, the healthcare sector cannot expect a free pass. Families are still grappling with the high cost of living, and there is continued pressure for one-off measures and assistance as seen last year.
Inflation may have slightly eased, but those facing the most difficulty have found little relief. Any available resources must be focused on helping them.
For now, as always, Budget 2024 remains uncertain. Speculation continues, but the views are still clouded. Those who analyze the situation have suggested that welfare rises between €10 and €12 are likely, as well as energy credits worth up to €150.
The Greens might express concerns about any subsidy that promotes the use of more fossil fuels.
