THE PARLIAMENTARY BUDGET Office, an independent body within the Houses of the Oireachtas, has said that many people will experience income losses as a result of yesterday’s Budget. 

It pointed to the withdrawal of cost-of-living measures as a cause and said it now expects income poverty rates to rise in 2025 and 2026. 

For elderly people, it said income poverty rates will rise from 13.3% in 2024 to 19% this year and then 17.6% in 2026. 

For children, it said it would rise from 15.3% in 2024 to 16.1% this year and then 15.6% next year.

The analysis noted that Budget 2026 sets a new record for government spending. 

It said, however, that Ireland’s fiscal outlook has deteriorated despite stronger-than-expected revenues and that the approach taken by the government risks intensifying inflationary pressures and contributing to the economy overheating.

Elsewhere, the analysis welcomed the prioritisation of capital investment in the Budget but noted that limited detail of projects has been provided despite the significant increase in spending.

Furthermore, it said it is concerned about the strength of the evidence used to support some Budget decisions.

However, one decision the report praised as being evidence-based was the decision to make the Basic Income for the Arts payment permanent.

It said the scheme demonstrates how pilot programmes, when coupled with rigorous evaluation, can inform “effective and targeted policy interventions that deliver”.