Government Exceeds Spending Target by €5.1 Billion Annually Since 2023, Ifac Reports
The Government has exceeded its annual spending target by an average of €5.1 billion since 2023, with a €7.1 billion overspend in 2024, according to Ifac. This is largely due to «bad planning» and «poor expenditure management,» especially in health and education. Ifac criticizes the Department of Public Expenditure for inadequate budgeting and oversight.
The Irish Fiscal Advisory Council (Ifac) reports the Government has exceeded its annual spending target by an average of €5.1 billion in each of the last three budgets. This overspend, averaging €5.1 billion per year since 2023, includes a €7.1 billion overspend in 2024.
Ifac attributes a significant portion of these overruns to «bad planning» and «poor expenditure management,» rather than just unforeseen factors like inflation. Most overruns (80% on average) are driven by current spending, particularly in health and education. While unforeseen circumstances and midyear measures contribute, Ifac highlights €2 billion in 2023, €3.2 billion in 2024, and €2.4 billion in 2025 overruns due to poor budgeting and weak oversight.
Minister for Public Expenditure Jack Chambers plans to introduce enhanced oversight mechanisms, having warned departments to rein in spending. Despite a commitment to limit annual increases to 6%, spending for the first four months of 2026 is already up 9%, driven by education overruns. Ifac criticizes the Department of Public Expenditure for consistently underestimating the cost of existing services and setting insufficient budgetary allocations from the outset.