Budget 2023 is nigh and pressure is mounting for the government to tackle the cost of living and the housing crises.

But what kind of once-off measures and long-term initiatives can the country expect?

Minister for Finance Paschal Donohoe joined The Anton Savage Show to discuss his plans ahead of Tuesday's budget announcement.

Energy crisis

As large energy companies continue to increase profits at the cost of customers, Sinn Féin has called on the government to introduce a cap on energy prices.

Minister Donohoe described the suggestion as "utterly reckless" and that it would be "the equivalent of writing a blank cheque".

"Any government do not know what the price of energy is going to be in the future. We don't know that."

"I've said since the huge increase in the price of energy began to develop in our country and we saw inflation began to grow that the government can help, the government can play a role, but ultimately we can't do everything", he said.

"The money that we have is the people's money - money that we either collect now in taxes or we borrow on your behalf in the future."

Housing

The Minister said he's "keenly aware" that the government is still not delivering enough, and not at the right price.

A new vacant property tax and more effective land tax in Budget 2023 will increase the supply of housing, according to him.

"Any such changes in taxation do play a really important role in helping put money back in the pockets and the purses and the wallets of those people who are the backbone of our economy", he said.

Building

The Minister said that, while more and more houses are being built, financial blocks mean they have not been built in proportion to population growth.

"It is because of the cost of construction within our country. It is because of the overhang from the global financial crisis a number of years ago."

He promises to keep sustainability and affordability in mind while building houses.

"This is why the funding of our tax package will come from inside the economic parameters that I announced earlier on in the year for the budget, and will not be paid for through the one-off measures we will be announcing that will accompany the normal budgetary measures on Tuesday."

Corporate tax

Speaking earlier today, broadcaster and entrepreneur Ivan Yates gave his opinion on what the country needs.

On The Anton Savage Show, he advised the Minister to put away some income from the state's rising corporate tax income to prepare for recession.

However, the Minister believes that such savings won't be necessary.

"Since 2019, I have not changed the spending plans of our budget as our corporate tax revenue has gone up", he said.

"That is now why we're in a position that as our corporate tax collection has gone up, it has fed through to a budgetary surplus for the country as opposed to using that money to pay the day-to-day public services."

Listen back to the full conversation here.

Main image shows Minister for Finance Paschal Donohoe TD outside St Mary’s Mansion in 2021. Picture by: Leah Farrell/RollingNews.ie