Government spending is up 50pc on what it was pre-Covid levels, Department of Finance warns

Mr. Donohoe was briefed on the unsustainable growth in public spending, which rose by 50% since the pandemic. Previous government spending rules were consistently violated, with increases averaging 9% instead of the intended 5%. The tax base is narrow and heavily reliant on a small number of multinationals, making the economy vulnerable to shocks. The document highlights the adverse effects on SMEs and suggests housing supply issues are linked to planning barriers. Overall, significant structural changes could profoundly impact the economy.

It is important that this policy instrument is used to control the growth in public spending, which has increased by around 50% since just before the pandemic.

Ireland's tax base is highly dependent on the taxation revenues from a small number of multinational companies, and this poses a major concentration risk.

Read at Irish Independent