Editorial: Budget ‘23 must be prudent but impactful

The nuances of the Budget for 2023 are still being worked out at the time of going to press, but suffice to say it has been one of the most eagerly anticipated Budgets in years.

The cost of living crisis which is hitting absolutely every household in Tipperary and the country at large, will be addressed to some extent in the figures, we are told. But of course, no matter what measures are taken, they will not be enough to offset the huge rise in prices driven by the war in Ukraine and the cost of energy.

Government has already engaged in interventionist measures in a bid to alleviate hardship on homes and businesses - the electricity bill rebate was most welcome as has been the increase in the fuel allowance. A series of further electricity rebates are in the pipeline too and, according to some, there is much more which can be done.

However, any move to intervene and provide further assistance has to be undertaken with a large slice of prudence. We cannot afford to drive ourselves into inflation driven recession especially when there are plenty of external geo-political and global elements at play which are threatening to push us further in that direction.

The Coalition partners have to ensure that whatever measures are taken will help and not hinder. They cannot be duped into spending unwisely just to sate public unrest. It requires steady hands on the wheel and a willingness to put the country, rather than the individual personalities and parties, first.

There is also the fact that any spend will have to be accounted for in future and generations of Irish taxpayers will be financing these moves for years. All of this is on top of the borrowing which has paid for the Covid pandemic interventions as well - the debt levels are getting more and more significant and that is a worrying fact as well.

Financial prudence is needed more than ever, in the household and in government. But at the same time, let’s hope we all come out with something meaningful.