DAVY VIEW

The €14bn (2.7% of GDP) Budget package announced today is broadly in line with expectations. Core public spending will rise sharply, by 6.1% in 2024, as expenditure on health, housing, infrastructure and public services is ramped up. The Budget was focused on household incomes, with €1.3bn of tax cuts raising disposable incomes at the average wage by €779, or 2%, with €450 energy price credits to be paid this winter. Nonetheless, a budget surplus of €8.4bn, or 2.7% of GNI*, is expected in 2024.