Divisions are growing in Government over future budgets amid suggestions ministers will have to “sing for their supper” to maintain their existing level of service funding.
Public expenditure minister Jack Chambers, finance minister Paschal Donohoe, and the Coalition leaders met earlier this week to discuss Budget 2026.
It is understood that some of the discussion focused on the existing level of service — the funding required for departments to deliver services and supports before any new measures are introduced as part of the budget.
This money is typically baked into the budget every year in order to meet demographic and service growth.
One senior source said Mr Chambers and the Department of Public Expenditure have advised they will be “changing the approach” to the existing level of service funding and that ministers will have to “justify and make a business case” for their budgets.
They described the change of approach as dramatic and said people will be made to “sing for their supper”.
Another senior Government source said Mr Chambers will ask ministers to examine their departments’ budgets and existing level of service and see if they can “reformed”.
It is not expected to impact this year’s budget.
One senior Government minister echoed concerns about the level of funds available in the upcoming budget, warning it would not be as expansionary as previous years. They highlighted how there has been very little floating of budget asks within the media over recent weeks, compared to previous years, saying: “There’ll be no rabbits pulled out of a hat this year.”
While there is likely to be a tightening of budgetary measures, the source stressed the Government would not be moving towards cutting back on departmental budgets. They added:
There’s always a challenge with existing level of service, but there won’t be cuts.
Mr Chambers confirmed the “move away” from existing level of service in a parliamentary question response in July, saying “departments are being asked to consider the totality of their existing allocation with a view to delivering policies and services as efficiently as possible”.
One source said ministers will now be asked to look at their total budget allocation rather than just the additional money they receive.
Mr Chambers published the medium-term expenditure framework on Wednesday, which he said will be “used to inform future budgetary requirements for existing services”.
As part of the Budget 2026 negotiations, discussions with ministers are focusing on “policy choices they’ll need to make” to “moderate current expenditure,” he said.
We need to pivot away from the focus on the additionality, which is how budgets are often framed.
Tánaiste Simon Harris said the budget is being prepared with the financial assumptions used in July’s summer economic statement, which had used a zero tariff scenario, saying he is “satisfied the analysis that we have from the Department of Finance... means that we can proceed on the basis of the summer economic statement”.
Meanwhile, the Government will move to introduce a second tier of child benefit in the upcoming budget, the Taoiseach has confirmed.
Micheál Martin said the plan is being worked on now, adding that, on Wednesday night, he met with social protection minister Dara Calleary on how it might work.
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