Finance Minister Paschal Donohoe says several measures to help with the cost of living in the upcoming budget have to be universal.

He was speaking following publication of the Summer Economic Statement, which will see a 6.5% increase in core Government spending this year.

The budget will also be held two weeks early on September 27th.

In total, €6.7bn extra will be spent next year - with €2.7bn available for new measures.

Minister Donohoe told Newstalk Breakfast there will have to be a mixed approach.

"The impact on the cost of living has been so broad and so big, we believe this should be a mix of measures.

"We believe some should be universal, we believe some should be targeted.

"We believe there should be some universal measures because the impact of the higher price of fuel, higher price of food is affecting all.

"And critically if you have a response that is targeted... it always runs the risk of excluding a large amount of people who are at work, who are feeling the pinch - but whose income is too high to allow them to qualify for any social welfare or any social insurance payments".

Minister Donohoe also disputed claims the Government is relying on corporate tax receipts to increase spending.

Analysis of the Summer Economic Statement from the Irish Fiscal Advisory Council (IFAC) said much of the boost in tax revenues reflects strong corporation tax receipts.

But it warned: "These should not be relied on to fund permanent spending increases.

"Over-reliance on corporation tax should be reduced through contributions to the Rainy Day Fund or a new Pension Reserve Fund."

'No change to spending plans'

Minister Donohoe said that all of the additional money collected from the tax this year has so far not been spent.

"The context to that concern, that we did hear before the pandemic as well, is the degree to which corporate tax receipts have increased in 2022.

"It has increased by €3bn already this year, it's an increase from €5bn to €8bn, but that has been fed into a surplus - so our surplus is now €4.2bn.

"So all of the additional money that we have collected in corporate tax this year has not been spent, it has not been used to change our spending plans.

"While I know that is a difficult case to make, given how hard it for many at the moment, at the end of the day that corporation tax - given how high it is - is also the kind of tax that if a little changed happened in it, could have a huge change in our ability to continue to fund public services.

"That is a balance that we are trying to get right, but I'd make the case that so far this year we have".