Donohoe – ‘Too risky’ to increase budget spending

Finance Minister Paschal Donohoe has said it would have been too risky to increase spending in the budget beyond €4.7bn.

That’s despite the Department of Finance saying the economy is recovering faster than expended, partly fueled by the spending of built up savings.

Opposition parties have said the Government should have gone beyond yesterday’s announcement in areas like housing and childcare.

But Finance Minister Paschal Donohoe believes they’ve got the balance right.

“I believe if we had gone beyond the €4.7bn it would have been risky.

“It would have been risky in the amount of additional debt that we would have taken on, and it would have been risky putting money into an economy that already has evident constraints within it.”

Meanwhile the Housing Minister has said he doesn’t accept there’s nothing in the budget for renters.

Darragh O’Brien said there’s a significant investment being made in cost rental accommodation over the next few years.

However, no new measures on top of the Housing for All Plan were revealed yesterday.

Despite that, Minister O’Brien says he doesn’t accept the budget didn’t provide for renters.

“It is tough out there for renters, and I absolutely recognise that.

“That’s why in Housing for All we want a new deal for renters.

“I will within the next couple of weeks bring in further changes to the caps on rent, intent on being able to deal with the recent increase in inflation, that we have a more permanent cap in the rent increase that’s permitted.”

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