The ruling coalition of Fianna Fáil and the Green Party presented the budget for the Republic this afternoon in the shadow of the post-property bubble explosion. The national debt is 12% of GDP and EU rules state that member nations must not exceed 3%. We've been given four years to shape up and that meant the most controversial budget in the history of the nation. I for one have been mighty impressed by the performance of the government in the delivery of this budget, a government that many blame for putting the nation where it is right now.
Here's what they did:
Social Welfare payments reduced by 4.1% with those who refuse work getting their social welfare slashed drastically further.
Child benefits reduced by €16 a month.
Pay cuts across the board in the public sector: 5% on first €30,000 earned, 7.5% on the next €40,000 and 10% on the next €55,000!
Public sector pensions now linked to average salary over the course of their career rather than final salary.
VAT reduced by 0.5%.
Excise duties on alcohol slashed.
Tax on tobacco unchanged.
Carbon tax of €15 per tonne on fossil fuels (transport and heating).
Taoiseach's salary to be cut by 20%.
Retirement age for new public servants increased from 65 to 66.
50c tax on every medical prescription.
Mortgage interest relief until 2018 for those in negative equity.
Capital expenditure (roads, rail, etc.) reduced by over 13%.
No increase in income tax.
Net savings to the exchequer: €4bn
Of course unions across the board have slated it, the opposition has slated it and a rash of other populist naysayers probably will too. For me though, I commend them for taking the bull by the horns and doing a dirty, thankless job. Draconian? Maybe. Necessary? Definitely.
Here's what they did:
Social Welfare payments reduced by 4.1% with those who refuse work getting their social welfare slashed drastically further.
Child benefits reduced by €16 a month.
Pay cuts across the board in the public sector: 5% on first €30,000 earned, 7.5% on the next €40,000 and 10% on the next €55,000!
Public sector pensions now linked to average salary over the course of their career rather than final salary.
VAT reduced by 0.5%.
Excise duties on alcohol slashed.
Tax on tobacco unchanged.
Carbon tax of €15 per tonne on fossil fuels (transport and heating).
Taoiseach's salary to be cut by 20%.
Retirement age for new public servants increased from 65 to 66.
50c tax on every medical prescription.
Mortgage interest relief until 2018 for those in negative equity.
Capital expenditure (roads, rail, etc.) reduced by over 13%.
No increase in income tax.
Net savings to the exchequer: €4bn
Of course unions across the board have slated it, the opposition has slated it and a rash of other populist naysayers probably will too. For me though, I commend them for taking the bull by the horns and doing a dirty, thankless job. Draconian? Maybe. Necessary? Definitely.