The government of Ireland plans to be a part of the EU-wide response to high energy prices. If this is not possible, it plans to bring forward its own measures to aid with rising costs. Read more on the upcoming tax cuts and budget plans envisioned for 2023.
€11bn Budget announced due to ‘exceptionally challenging times’
Minister for Public Expenditure Michael McGrath said he is making €100 million available in 2022 to ensure schools are supported in dealing with energy cost pressures and transport providers.
He said an additional €10 million will also be provided for further and higher education institutions. €60 million is being allocated to Local Authorities, and €110 million to a range of Health funded bodies including nursing homes, hospices and Section 39 organisations.
“This Budget will make a difference, and people will see that difference quickly. The Budget is delivered against “an extraordinary backdrop of uncertainty and challenge”, he said.
“We continue to navigate the uncertainties of Brexit, we got through the long, dark days of Covid, and we are responding with compassion and resolve to the dreadful invasion of Ukraine. We are doing this together, both here in Ireland and in co-operation with our international partners,” he added. Click here to read the full article.
Tánaiste ‘does not envisage’ mini-budget next year
Tánaiste Leo Varadkar has said he does not envisage a mini-budget being implemented next year. Speaking on RTÉ’s Morning Ireland, Mr Varadkar said Budget 2023 is being front-loaded with most of the one-off payments before Christmas. Permanent increases in payments, pensions and welfare will come into effect in the New Year.
Two of the three energy credits announced yesterday will be paid next year. It is possible energy prices will fall by February, however it is uncertain according to Mr Varadkar.
However, the Irish Fiscal Advisory Council has welcomed the Budget for 2023 and said it was “sensible”. Sebastian Barnes, Chairman of the IFAC said: “The Government had a really difficult job in this Budget and it had to strike a very difficult balance between helping people and helping the economy, but at the same time not putting too much money into the economy that would have contributed to higher inflation.”
“And so, what they’ve done is they’ve pretty much stuck to their plans they set out in July and that’s pretty much consistent again with the fiscal rules they set out last year. And we think that the balance struck is about right, so that’s why we welcome this budget in those terms,” he added. Click here for the full article.
Govt should abandon plans for tax cuts in upcoming Budget – ICTU
The Irish Congress of Trade Unions (ICTU) has said the Government should abandon its plans for tax cuts in the upcoming Budget. Instead it prioritises the increases in public expenditure on housing, healthcare and childcare.
In its pre-budget submission, ICTU says permanent tax cuts are unaffordable and unjustified. ICTU says the pandemic has shown that basic services and the welfare state have shown themselves to be the indispensable bedrocks of people’s economic well-being. It also suggests the Brexit Adjustment Reserve be used to retrain workers. Click here to read the full article.
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