Minister Donohoe publishes Annual Report on Public Debt
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From: Department of Finance
- Published on: 5 September 2025
- Last updated on: 5 September 2025
- Gross public debt stood at an estimated €218 billion at end-2024, around €15 billion higher than just before the pandemic.
- Last year’s figure was the equivalent of 68 per cent of national income (GNI*).
- On a per capita basis, public debt in Ireland amounts to €40,500 per person, a figure which is high relative to other advanced economies.
- Structural features of Ireland’s public debt provide important insulation against any sudden shift in the interest rate environment.
- Nevertheless, higher borrowing costs over time are likely to trigger higher debt service payments, as maturing debt is rolled-over with new debt instruments that carry a higher coupon than the maturing bonds.
The Minister for Finance, Paschal Donohoe T.D., has today (Friday) published his Department’s annual assessment of public indebtedness in Ireland.
This year’s assessment – the eighth such report – is prepared against an external backdrop characterised by elevated geopolitical tensions and heightened levels of economic uncertainty.
The Report confirms a broadly favourable assessment of public debt dynamics in Ireland. The debt-to-income ratio has fallen notably over recent years, driven by strong output growth and headline budgetary surpluses. That said, there are well-documented vulnerabilities in the tax base and debt remains high on a per capita basis.
Commenting on the analysis set out in the Report, the Minister Donohoe, said:
‘The analysis by my Department illustrates the importance of prudent management of the public finances’.
“While structural aspects of Ireland’s debt have, so far, insulated the public finances from the impact of a shift in the interest rate environment since the pandemic this will not last forever. Indeed, a significant portion of public debt will be exposed to higher interest rates in the coming years.
“Furthermore, the underlying fiscal position is much less benign than the headline figures suggest. The headline budgetary surpluses in recent years have been driven by significant increases in corporation tax receipts over the past decade. This volatile revenue stream arises from just a handful of firms.
“The near-term, structural changes in the Irish economy, demographics, decarbonisation, digitalisation and de-globalisation will all have adverse consequences for the evolution of public debt and the public finances as a whole.
“For this reason, as reiterated in the Summer Economic Statement, the Government will target headline budgetary surpluses and will continue to capitalise the Future Ireland Fund and the Infrastructure, Climate and Nature Fund to help mitigate the risks to the public finances posed by these challenges.
“While the challenges are clearly visible, there are also opportunities. The revised National Development Plan and the upcoming Medium-Term Fiscal Structural Plan will help to provide an appropriate framework to maximise these opportunities.”
Annual Report on Public Debt In Ireland 2024
Annual Report on Public Debt In Ireland 2024 - Summary
Ends
Notes to editors:
This is the Department’s eighth annual assessment of public debt dynamics. Projections contained in the Report are based on the Department’s spring projections updated to take account of outturns from the CSO’s 2024 Annual National Accounts. Data presented are as mid- July 2025.