Leo Varadkar addresses opening of National Economic Dialogue, as Ministers advocate for ‘prudent’ approach
“If the Government takes an overly cautious approach in dealing with the cost of living crisis and the climate crisis, it is making a conscious decision to reduce living standards and to do less,” he said. “And that’s not something we should stand over given our fiscal position. Having said that, we have never, nor will we, use temporary revenues to fund permanent or occurring day to day spending. We have to be careful not to do that.
“We will have to do a series of increases again, but perhaps will have to take a different approach,” he said, adding that while “one-offs have their place”, they “are not a long-term solution”. Asked later if he was cooling off on the idea of one-off emergency payments, he said this would be “an over-interpretation.”
While Mr Varadkar said the Government is “very much aligned” on its goals for Budget 2024, the Minister for Finance Michael McGrath and Minister for Public Expenditure Paschal Donohoe said they were advocating a “prudent” approach.