Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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222. To ask the Minister for Finance whether he accepts the Central Bank’s warning that the Budget package is too large at this stage of the economic cycle; and if so, the measures he intends to take to mitigate the risks identified. [50414/25]

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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224. To ask the Minister for Finance the specific steps being taken to broaden the tax base, as recommended by the Central Bank, to ensure the sustainability of current spending commitments. [50416/25]

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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226. To ask the Minister for Finance the analysis his Department has undertaken of the inflationary or pro-cyclical risks of injecting €9.4 billion in additional spending and tax measures into the economy at the present time. [50418/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 222, 224 and 226 together.

Significant structural changes to the tax system have been implemented over the last two decades to broaden the tax base, which include the introduction of the Universal Social Charge, Local Property Tax and Carbon Tax. In addition to this, many tax expenditures have been phased out. All of these actions have resulted in the tax base being widened considerably.

The Government is acutely aware of the risks associated with a narrow tax base. Addressing this vulnerability, particularly in respect of highly concentrated corporation tax receipts, is a central part of Government’s fiscal strategy.

The establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund will enable us to invest a portion of windfall receipts to prepare for future structural challenges, including the costs associated with an ageing population. These funds will also ensure that windfall receipts from a small number of companies are not used to fund permanent spending commitments.

Of course, the best way to ensure the sustainability of the public finances is by following an appropriate budgetary strategy. Government has responded as needed in recent years by providing targeted and timely supports to those households and businesses most in need. Inflation has eased significantly over the last 18 months and is expected to remain relatively stable over the coming period.

The budget package announced in the Summer Economic Statement strikes an appropriate balance between addressing the challenges of today without jeopardising the sustainability of the public finances or adding unnecessarily to price pressures over the medium term.