In all, Ireland has endured about 30 billion euros ($34 billion) of austerity measures since 2007, and Noonan has indicated that he has about 1.5 billion euros for tax cuts and spending increases in 2016.
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It is anticipated the rise – which comes into effect at midnight – will bring in €61.4m to be spent on health initiatives. The Budget also announced that the minimum wage will rise from €8.65 to €9.15 per hour.
NAMA is set to deliver 20,000 residential homes by 2020 – 90% of these are planned for Dublin at cost of €4.5 billion. “It leaves little on the table for a city like Limerick, and this ratio is disappointing”, he said, “This government had one last opportunity to tackle inequality and they missed it”.
The government claims changes to the much-despised Universal Social Charge, a tax brought in when the country’s finances nosedived, will save families hundreds of euro a year.
The deficit this year is expected to be 2.1pc, well ahead of the original 2.7pc target, falling to 1.2pc at the end of next year.
Increases in child benefit and the introduction of free pre-school for children aged between three and five are expected to be announced.
Meanwhile, parents will see a €5 increase in their monthly child benefit, raising the rate to €140 a month.
In a nutshell, the new Partnership scheme will allow any parent and child (under 40) to enter a formal partnership which will formalise the transfer of the family farm over a period of not more than 10 years. Even after these measures, the General Government Deficit is envisaged to come in at a very manageable 1.2% of GDP in 2016 (from a deficit of 2.1% this year) while the General Government Debt/GDP ratio, which has already fallen sharply (to 102.0% of GDP in Q2 2015 from the Q2 2013 peak of 125.3%), is guided to continue falling over the coming years (to 90.3% by end-2017).
The old age pension is to be raised by €3 a week, there is to be an increase to the fuel allowance and a larger than expected Christmas bonus.
Minister Howlin confirms 2,260 new additional teaching posts for 2016.
The Respite Care grant is to be restored to €1,700.
Noonan in his speech said: “This Government has consigned to the history books the days of boom and bust, and the attitude of ‘if I have it, I’ll spend it, ‘” – the latter was a reference Charlie McCreevy who was finance minister in 1997-2004 while the reference to “days of boom and bust” was a version of Gordon Brown’s mantra on ending Tory boom and bust when he was United Kingdom chancellor of the exchequer, only to live through a bust after becoming prime minister.
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Mr Noonan said the budget will “provide stability to families across the country”, rewarding work, enterprise and innovation.
