Ireland's Bold Budget: Strategic Moves for Economic Resilience and Growth

Ireland's new budget focuses on cutting business taxes and improving public services. Despite a corporate tax boom, the budget increases day-to-day spending by 7.3%, with an emphasis on resilience against U.S. trade policies. Key incentives have been adjusted to boost foreign investment, and infrastructure plans aim for long-term growth.

Ireland unveiled a strategic budget aimed at bolstering economic resilience and attracting foreign investment, leveraging robust public finances amid a booming corporate tax revenue stream. The government emphasized discipline, increasing spending by 7.3%, slightly below recent years, to shield the economy from U.S. trade impacts.

Finance Minister Paschal Donohoe announced significant changes, including a tax credit hike for research and development and infrastructure investments. While VAT cuts offer immediate support, critics warn of minimal impact on living standards, emphasizing future income tax alterations. Opposition voices question benefits for ordinary workers.

The budget outlines ambitious capital spending plans through 2030 to address infrastructure gaps and sustain foreign investments. Reductions in investment fund tax rates and future tax framework simplifications aim to spur retail investments. The measures target long-term economic stability and adaptability amidst global challenges.

(With inputs from agencies.)