Oireachtas Joint and Select Committees

Thursday, 18 September 2025

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Committee on Budgetary Oversight

Pre-Budget Engagement

2:00 am

Professor Michael McMahon:

There is always a mix. There will be unforeseen things. In those years, there were the highest increases in inflation across the advanced economies for 30 or 40 years. Naturally, that will add to budgetary pressures. What you think is going to be the cost in 2022 suddenly goes up by 5%, 6% or 8%. We have gone on a lot about health, which we know is going to be a cost - we can predict it based on demographics. There is some variation depending on how cold the winter is. That has huge impacts on the health budget. There is an amount of that €1.3 billion current spending we could have predicted sitting here on budget day because we knew it was not in there. You will never get it perfect but that is the stuff you should be getting-----

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