Finance Minister Paschal Donohoe has announced a €9.4 billion increase in government spending in Budget 2026, with most of the funding directed towards infrastructure investment.
Of the total package, €8.1 billion will go to public spending, while €1.3 billion will be allocated to taxation measures.
Minister Donohoe described the plan as a “pro-investment budget” and said it is expected to create 63,500 jobs by the end of next year. The Irish economy is forecast to grow by 3.3 per cent this year and by 2.3 per cent in 2026.
Among the new positions planned are 1,000 Gardaí and 2,600 additional education staff.
From 1 January 2026, the national minimum wage will rise by 65 cent to €14.15 per hour. No changes were announced to personal income tax.
For students, a permanent €500 reduction in third-level fees was confirmed — half of the original €1,000 cut that was rolled back in June.
The Department of Transport will receive €4.7 billion for roads, greenways and active travel projects.
A carbon tax increase will bring the rate to €71 per tonne of carbon dioxide emitted. The change will apply to auto fuels from tomorrow, and to all other fuels from 1 May 2026.
The VAT rate for the hospitality sector will be reduced from 13.5 per cent to 9 per cent. The same rate will apply to gas and electricity until 31 December 2030.
Social welfare payments will rise by €10 per week. Child Benefit will increase by €8 for children under 12 and €16 for those over 12. The Fuel Allowance will also rise by €5.
A 50-cent increase will apply to a 20-pack of cigarettes from tonight, and a new tax of 50 cent per millilitre of nicotine e-liquid for vapes will come into effect in November.
Yesterday, The Limerick Voice spoke with UL students about their thoughts on Budget 2026.