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Finance Department’s ‘Future Forty’ Warns of Deficits and Soaring Debt as Ireland Ages

The central scenario calls for near‑term reforms to bolster revenues and curb spending as volatile corporate taxes fade.

Overview

  • The 240‑page assessment models more than 2,000 paths to 2065 and sets an official baseline of deficits from 2033 with national debt rising toward about 148% of GNI* and a deficit near 8% without policy change.
  • Age‑related costs in healthcare, long‑term care and pensions are projected to consume roughly 46% of day‑to‑day public spending by mid‑century.
  • Ireland’s old‑age dependency ratio is forecast to climb to about 55% by 2065 from 23% in 2022, pressuring growth and public finances.
  • Boom‑time corporation tax receipts are expected to decline markedly between 2030 and 2040, underscoring the risk from concentrated, volatile revenues.
  • Labour supply is set to weaken from 116 to 98 workers per 100 not working by 2065, with the report describing continued inward migration as vital; climate and debt‑service costs also rise, with extreme climate spending scenarios reaching 3–4% of national outlays despite a future sovereign wealth fund cushion.