The Minster for Finance has insisted there will be no repeat of last year's once-off cost of living measures, but other permanent supports will be put in place in next month's Budget.
Speaking at the Oireachtas Budgetary Oversight Committee, Paschal Donohoe said inflation has normalised, although the Government understands that prices have risen.
"Government is fully aware of the impact inflation has had on businesses and households throughout the country over recent years," he said.
"Inflation has now returned to normal rates, but we are acutely conscious that price levels have risen in recent years, especially for necessities such as food. In this Budget, we will provide cost of living supports that are sustainable and permanent."
Mr Donohoe told the Committee the economy is resilient, the public finances are in good shape and Modified Domestic Demand which measures activity in the domestic economy grew 4% in the first half of 2025.
However, he said it is not a time for complacency and the rate of growth of current spending has to be moderated. He also spoke the danger of over reliance on corporation tax receipts.
"Ireland must remain a top destination for multinational firms. These corporation tax revenues helped fund Government's extraordinary response to the pandemic and the cost of living challenge," he said.
"Nonetheless, I have warned on many occasions about the risks of overreliance on corporation tax. A highly concentrated tax base presents an inherent risk to sustainable public finances.
"Ten companies account for well over half of all corporate tax receipts. A negative shock to these companies would also negatively impact VAT and income tax revenues."
Mr Donohoe said Budget 2026 is coming at a time of great uncertainty and the disruption of internationally settled trade rules will damage Ireland's economic growth.
He said, however, the economy is fundamentally resilient.
Budget 2026 will be announced in the Dáil on 7 October by the Mr Donohoe and the Minister for Public Expenditure, Infrastructure, Public Services and Reform, Jack Chambers.
