News

Varadkar reveals main objective of Budget 2024

Varadkar reveals main objective of Budget 2024
Irish Budget 2024, ยฉ PA Wire/PA Images

Taoiseach Leo Varadkar has said the main objective behind the 2024 Budget was to help people cope with the cost-of-living crisis.

The โ‚ฌ14 billion budget package released on Tuesday included a range of once-off payments.

These include, three electricity credits worth โ‚ฌ450; a winter fuel allowance lump sum of โ‚ฌ300; a โ‚ฌ200 winter living alone allowance; a Christmas bonus for welfare recipients; and โ‚ฌ250 million in once-off business supports.

The one-off payments were criticised by opposition parties for lacking โ€œvisionโ€ and โ€œambitionโ€.

Advertisement

Irish Budget 2024
Minister for Finance Michael McGrath and Minister for Public Expenditure Paschal Donohoe (Liam McBurney/PA)

Mr Varadkar responded to the idea that the budget was spread too thinly, and said these measures aimed to increase peopleโ€™s standards of living in a climate of rising inflation.

โ€œThe real thinking behind this budget was that, this is a budget that was about helping people with the cost of living, helping people to have more money in their pockets,โ€ he told RTร‰.

Advertisement

โ€œThe objective, really of any government, is that peopleโ€™s living standard should rise every year that their income should rise faster than inflation, than the cost of living.

โ€œThat didnโ€™t happen last year, because inflation was so high, it was 10 per cent. I think this year, weโ€™ll probably see incomes and inflation match.

โ€œNext year, we want that to be the year where peopleโ€™s incomes rise faster than prices again, and thatโ€™s how you secure a real improvement in living standards.โ€

Reform

Advertisement

The budget also set up two new funds that will use the State's multibillion-euro windfall from corporation tax receipts, mostly derived from multinational companies, to invest in future priorities, including support for the response to climate change.

Mr Varadkar said the funds will be what people remember from Budget 2024.

โ€œI think when people look back on this budget in 10 or 20 years time, that will be the reform that I think will be the most significant,โ€ he said.

An overspend in the Department of Health was flagged as a pinch point ahead of Budget 2024, but Mr Varadkar said next year's allocation for health was โ€œhugeโ€.

โ€œSince this Government came to office we have 1,000 more hospital beds, 20,000 more staff in our health service,โ€ he said.

He added: โ€œLook at how our health service is outperforming the NHS for example, better outcomes in stroke and cancer, longer life expectancy now in Ireland than almost anywhere in Europe and also, healthcare is more affordable than it was before.โ€

Mr Varadkar also stated that Ireland had proved that challenges in healthcare were not solely caused by lack of funding.

โ€œWe do accept that there is going to be a challenge when it comes to the health budget, particularly when it comes to hospitals,โ€ he said.

โ€œSome of that is down to financial control and financial management, but a lot of it is down to something else.โ€

He added: โ€œThe demand for health services increases every year with an ageing and growing population but something else is happening.

โ€œThereโ€™s definitely a snapback in demand post-Covid thatโ€™s putting a lot of pressure on hospitals in particular.

โ€œWe understand that, and we will be working with Minister [for Health Stephen] Donnelly and the HSE to make sure that the health service is adequately funded for next year. But it isnโ€™t all about money, and I think weโ€™ve proven that in Ireland.โ€

Irish Budget 2024
Taoiseach Leo Varadkar speaks to the media (Brian Lawless/PA)

Mr Varadkar said the budget would facilitate the building of new affordable homes in efforts to tackle the housing crisis and rising homelessness in which it has resulted.

โ€œWe exceeded our target for new home construction last year, and we will again this year. Iโ€™m very confident of that,โ€ he said.

โ€œAnd we will increase our targets, weโ€™re going to do that in the new year and (the housing Minister) Minister Oโ€™Brien is working on that at the moment.

โ€œWhatโ€™s in the budget when it comes to housing, confirmation that the budget for the Department of Housing next year will be more than โ‚ฌ5 billion, the biggest ever.

โ€œAnd thatโ€™s going to allow us to break all records when it comes to the provision of new public housing. Thatโ€™s social housing, itโ€™s affordable rental, itโ€™s also affordable for purchase.โ€

Mr Varadkar also described homelessness as โ€œone of the biggest problems we faceโ€.

Claudia Savage, PA

Keep up to date with all the latest news on our website Beat102103.com.

Advertisement