Budget 2026 ‘won't repeat' cost of living packages of past years, Paschal Donohoe says despite price rises in food and fuel
Mr Donohoe said packages of up to €2.5bn to help with the cost of living were included in past budgets at times when inflation was at five, 10 or 15pc.
'We should not, and I believe will not repeat that again,' he told RTÉ's Morning Ireland.
"But we will find other ways, budget by budget, and over four to five budgets, instead, of helping with and responding back to the needs within our society'.
He said he is 'absolutely well aware' of the impact of the cost of living: "I see it and I experience that, I know the difficulty it poses for very many in our country.' However, he said there are risks when it comes to funding permanent measures with tax receipts that may not always be available in the future.
There are 'challenges' ahead for the Irish economy due to US tariffs, Mr Donohoe said, but we are heading towards those challenges in a 'position of strength'.
He was responding to the findings of the latest economic forecast from the Economic and Social Research Institute (ESRI), which factored in a 10pc US tariff.
Different scenarios for the Irish economy, where tariffs were and were not permanently applied by the US, have been taken into account by Government, Mr Donohoe said.
'Maintaining a surplus in the public finances remains important while uncertainty over the future of the pharma industry continues.
"That is not yet clear and the reason that is not yet clear is President Trump's administration is conducting an assessment of the life science and pharmaceutical sector.
'What we are doing with the European Commission and through the European Commission is making the case for supply chains, making the case for medicine being made and across the world, and the role that Ireland can play in doing that in an affordable way.'
Mr Donohoe acknowledged windfall corporation tax income is being used for day-to-day spending and said this highlights the continued need for a budget surplus.
"The very reason we have a surplus of just under €9bn is we believe we should not be spending a share of our corporate tax receipts that might not be available to us permanently.'
€15bn will be set aside in the Future Ireland Fund by the end of this year and between this money and the running of a budget surplus, Mr Donohoe said the country will be able to 'absorb' a fall in corporate tax receipts.
The latest ESRI report forecast 33,000 homes to be built this year, falling short of Government targets. Mr Donohoe said there is a need to 'go all out' to meet an overall target of 300,000 homes built in the lifetime of this Government.
"I believe it is doable, but I know it will be demanding. Since 2016, we've built 200,000 more homes in our country. Since 2020 or 2021, a further 100,000 of those 200,000 homes have been built
"We saw 60,000 homes commenced last year, but we know it's not enough.'
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