In a report unveiled on Wednesday, Ireland’s Finance Minister, Michael McGrath, announced a modest reduction in the national debt, which now stands at €223 billion, down from €236 billion in 2021. However, the per capita debt remains among the world’s highest at €42,000 per citizen, posing a significant challenge for the small economy. John McCarthy, Chief Economist at the Department of Finance, expressed concern over the nation’s over-reliance on corporate tax, warning that a reduction could spike the national debt by 15% by 2035. McCarthy highlighted the potential for the current debt situation to escalate into a future disaster if not addressed. Despite the risks, he pointed to the 2024 Budget’s Future Ireland Fund and the Infrastructure, Climate, and Nature Fund as crucial interventions to mitigate future economic uncertainties. The current national debt represents 76% of the Gross National Income, making careful fiscal management essential for Ireland’s economic stability.
