Parliamentary Budget Office releases latest fiscal impact analysis
New research indicates that Budget 2027 largely aligns with current inflation and wage projections. However, cumulative data suggests households remain behind wage-indexed benchmarks when accounting for the combined effects of the previous two national budgets.
Source:
Oireachtas - Press Releases
•
⏱️ 2 min read
The Parliamentary Budget Office has released its latest assessment of Budget 2027, offering an independent evaluation of how recent fiscal measures affect household incomes across the country. The report reveals that while the current budget package keeps pace with projected inflation and wage growth, the combined impact of the 2026 and 2027 budgets leaves the average household income trailing behind necessary wage-indexed benchmarks. This analysis is designed to assist Oireachtas members in their scrutiny of the government's economic strategy.
Key findings highlight a disparity in how different income groups are impacted. While lower-income households see some relief from specific social welfare measures, the removal of temporary cost-of-living supports has contributed to a projected rise in income poverty, particularly among the elderly. Furthermore, the report notes that although tax and welfare changes have historically outpaced inflation over the last decade, they have consistently lagged behind the country's strong earnings growth. This policy trajectory has effectively improved the state's budgetary position by an estimated €5.3 billion compared to a scenario where 2017 rules were fully adjusted for wage increases.
The document also examines the potential for household participation in the new Investment Account. While the capacity to save and invest varies drastically across income deciles, the analysis suggests that a significant volume of financial assets held by middle-income households could be reallocated to the scheme. For those interested in the full technical breakdown, the complete report and additional analytical outputs are available on the official Houses of the Oireachtas Budget Hub website.
Key findings highlight a disparity in how different income groups are impacted. While lower-income households see some relief from specific social welfare measures, the removal of temporary cost-of-living supports has contributed to a projected rise in income poverty, particularly among the elderly. Furthermore, the report notes that although tax and welfare changes have historically outpaced inflation over the last decade, they have consistently lagged behind the country's strong earnings growth. This policy trajectory has effectively improved the state's budgetary position by an estimated €5.3 billion compared to a scenario where 2017 rules were fully adjusted for wage increases.
The document also examines the potential for household participation in the new Investment Account. While the capacity to save and invest varies drastically across income deciles, the analysis suggests that a significant volume of financial assets held by middle-income households could be reallocated to the scheme. For those interested in the full technical breakdown, the complete report and additional analytical outputs are available on the official Houses of the Oireachtas Budget Hub website.
0 views