This year’s budget is to be brought forward by one week - fuelling speculation of an early election.

Budget 2025 will be delivered on October 1st, one week earlier than planned; however, finance Minister Jack Chambers is insisting the change is not a sign of an early election.

On Newstalk Breakfast, Minister Chambers described the current Exchequer returns as a “really positive” foundation for the budget. 

“Income tax of €16 billion, up 7% compared to 2023,” he said. 

“Corporation tax of €12 billion, up 15% and VAT at €11 billion, up 6%. 

“That speaks to the success of the recovery of the Irish economy after COVID and the resilience of the labour market with over 2.7 million people at work and we’ve inflation moderating now.”

Opposition TDs have called for significant increases in public expenditure but Minister Chambers said the Government needs to be “careful and sensible” given how much revenue comes from corporation tax paid by large multinationals. 

“I expect this year we’ll have €10 billion put aside to provide for that medium term risk which is within our economy,” he said. 

“If you look at the corporation tax receipts that we received for the month of June, for example, they’re significantly up on the first quarter of this year. 

“We know the volatility and unpredictability of corporation tax and that’s why the budget for 2025 will require Ministers to prioritise. 

“We’re very clear that we’ve a number of existing expenditure pressures within our budgetary framework which will need to be met for 2025.”

Minister Chambers pledged his approach to the public finances will be “responsible” and said he also hoped to make “further progress of housing”. 

“As Minister for Finance, I want to make sure that the decisions I take can be sustained into the medium to long-term,” he said. 

“That’s why at the core of our fiscal policy is insuring we save for the future and that’s why much of the excess corporation tax receipts are being put aside so that when the risks crystallise - which they may do in the medium-term - that we have an ability to intervene with the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.”

Main image: Jack Chambers arriving for Cabinet meeting. Image: PA Images / Alamy