Oireachtas Joint and Select Committees

Wednesday, 28 February 2024

Committee on Budgetary Oversight

Impact of Climate on Public Finances: Irish Fiscal Advisory Council

Mr. Niall Conroy:

On the use of funds, we really welcomed this after the last budget, particularly the future Ireland fund. We have talked a lot about the cost of the climate transition and the reduction in revenue and increase in spending as a result. That is not the only medium-term fiscal challenge we face. At a similar time, the population is ageing rapidly. There will be a lot of additional health spending and spending on pensions, both State and public sector. Putting money aside today when the economy is doing pretty well and demographics are pretty favourable is a good time to try to defray some of those costs in later years, which we know are coming down the track.