Commitment to Economic Management and Public Services
Minister for Finance Simon Harris has made it clear that his priority is to deliver on key areas such as housing, childcare, and disability services. He also aims to put more money back into the pockets of the people. In his first exclusive interview since taking over from Paschal Donohoe last month, the Tánaiste emphasized that the success of these initiatives depends on maintaining a well-managed economy.
Harris stated that economic certainty will allow government departments to focus on delivering on the promises made during the general election and outlined in the Programme for Government. As the leader of Fine Gael, he is set to take over his sixth Cabinet portfolio and plans to publish a medium-term fiscal plan to drive the domestic economic agenda. This plan, which has been long requested by the public spending watchdog, is expected to be delivered by the end of this year.
He acknowledged that the lack of a medium-term plan has been a legitimate criticism from the Irish Fiscal Advisory Council (IFAC), which recently pointed out that the government was “budgeting like no there’s no tomorrow.” Harris explained that producing this plan would provide not only certainty for economists but also for the delivery of the Programme for Government. He highlighted his goals of making progress on childcare, helping people keep more of their own money, and improving disability services while building more homes.
To achieve these objectives, Harris stressed the importance of managing the economy effectively. A medium-term plan would give government departments the clarity they need to proceed with confidence. Although tax cuts are unlikely in the next budget, they could be considered in Budget 2028, which is the last budget before Harris takes over as Taoiseach in November 2027.
Harris believes that making investments and running budget surpluses will help position the country’s finances to withstand potential economic shocks. Recent Exchequer figures revealed that the State’s tax take totaled €98.7 billion between January and November, a decrease of €400 million compared to the same period last year.
The report also showed that Ireland remains heavily reliant on corporation tax, with €29.5 billion collected in the first 11 months of the year. A record €10 billion was received in November alone. Despite this, the Exchequer recorded a surplus of €10.4 billion between January and November, down by €3.4 billion compared to the same period last year. Excluding tax receipts from Apple, which was ordered to pay billions in unpaid taxes, the current surplus is €7.1 billion.
Harris said he intends to continue carefully managing public finances through budget surpluses and investments into future funds to avoid the need for cuts. When asked about his approach to his new role, he humorously remarked that “Prudent Paschal has been replaced in the Department of Finance by Simon, who will be sensible.”
Mr. Donohoe, his predecessor, left last month to take up a new job at the World Bank in Washington DC. His move to take over from Donohoe was seen by party sources as an attempt to avoid promoting another minister. Some commentators questioned whether Harris had the qualifications to manage the State’s day-to-day finances.
Harris responded to these criticisms by pointing out that there has never been a finance minister who served as Taoiseach before. He highlighted his experience across various government departments and his role as a taoiseach and party leader, emphasizing his involvement in framing numerous budgets.
He also noted his record in Cabinet, where he has served as Minister for Health, Higher Education, Justice, Foreign Affairs, and Defence over the past decade. However, he stressed that this is a team effort and that what people can expect from him is the careful and sensible management of public finances.
Harris believes the government should never take the current level of available funds for granted and wants to implement steps to protect them. A key motivation for his approach is preventing a generation from experiencing the austerity that his generation faced earlier in life.
By running budget surpluses and investing in funds for rainy days or future challenges, Harris aims to create a buffer against potential economic shocks. He mentioned that yesterday’s new infrastructure plan, which seeks to cut through red tape and limit objections on major projects, is one element of this strategy.
Harris concluded by stating that the people of Ireland want to know that if they play fair, work hard, and contribute to society, they will also feel the benefits of that economy.