Pillar 1: Ensuring Sustainable Public Finances

Sustainable public finances are the foundation on which a lasting recovery rest.

The pandemic has had a severe impact on our public finances, with the Government providing an unprecedented level of support. The value of these Government supports up to this point is close to €38 billion.

Getting people back to quality, productive employment will help us to restore our public finances, and in turn enable sustainable access to better and more accessible public services.

The Stability Programme Update (SPU), which is a technical forecast based on existing policies, set out a technical macroeconomic and fiscal forecast. The forthcoming Summer Economic Statement will build on this, incorporating a medium-term deficit reduction framework.

2021 will be a critical year for International Tax as agreement is sought at the OECD on addressing global tax challenges, in particular that of digitalisation, which will need to be considered in the context of challenges brought about by the pandemic. An agreement at the OECD will bring stability to the international tax framework.

Looking ahead, the Government has established a Commission on Taxation and Welfare, which will provide a medium-to-long term blueprint to Government to inform the direction of our taxation and welfare policy. The current Commission on Pensions and development of an Automatic Enrolment retirement savings system will lay the foundations for a sustainable pensions system.