Trade union Siptu said the budget contained positive measures that will see workers make the first real financial gains from a budget in nearly eight years.
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“Our people are in a much stronger and certain position than 2011”, he said.
The governing coalition had indicated that there would be a modest giveaway of about 1.5bn euro (£1.1bn).
Nearly all of the €700 million in tax measures which Finance Minister Michael Noonan was expected to announce today will go towards introducing changes to the detested Universal Social Charge.
There’s to be an increase to the inheritance tax threshold, it will rise from €225,000 to 280,000 euro and an entrepreneurial package aimed at attracting 70,000 emigrants home has also been announced. While there was no reduction, the RAI are relieved that there was no increase in excise duty in Budget 2016.
There will also be no increase in alcohol rates, which were raised in the 2013 and 2014 budgets.
The minister said the pension fund levy had “done its job” and would end this year.
Noonan said Ireland’s public deficit would come in at 2.1 percent of gross domestic product (GDP) in 2015, well below of an earlier 2.7 percent forecast and below the EU’s 3.0 percent ceiling.
Commercial motor tax rates are to be simplified, with the 20 existing rates to be replaced by five new rates, ranging from €92 to €900.
Unemployment is expected to drop to 8% next year, with a drop to just 6.25% by 2021.
“The requirement to follow the strict rules set out by the OECD for these “patent box” regimes means that the KDB will have little impact in the FDI or domestic market”.
Mr Noonan said the country’s “bad bank” Nama has been tasked to deliver 20,000 new homes before the end of 2020. It is reported that the ministers and their officials are at odds over proposals to tackle rising rents.
The finance minister said this budget would “give certainty to the Irish people of a better future”.
The plan will be funded by a €13.2 billion allocation for health services next year.
Howlin also announced an increase of 5 euros per week in the pension. The 3.5pc rate will be reduced to 3pc for income earned between €12,012 to €18,688.
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Brendan Howlin says both parties are determined to find ways to control rent, and are keen to strike a deal to do so. This will aim to help local authorities secure accommodation for an additional 14,000 households. “We are acutely aware however that these small increases do not yet restore the Christmas Bonus, or the Fuel Allowance, to 2009 levels”.
