Wednesday, 24 November 2010

Anticipating Ireland's Budget

Budget 2011 and The Four Year Plan

The Irish cabinet are holding an emergency meeting this evening  to finalise details of a four year budgetary plan for the country . This plan will be closely tied to the forthcoming December 7th Budget for 2011 – and  it seems a few details have been leaked.
The Irish government are also expected to make a formal application to the IMF/EU for “substantial loans” this evening too.
Euro zone finance ministers have agreed to bailout Ireland, according to a report from the AFP new agency, citing an unnamed source
The ministers held an emergency conference call this evening to consider Minister for Finance Brian Lenihan’s declaration that he would seek Cabinet approval to request a financial rescue package from the Internatonal Monetary Fund and the European Union.
The 4 year plan  – to be published this week – will contain details of how the government hope to get €15 Billion in cuts or increased taxation by 2014.
Some of the likely measures include: all unconfirmed ……
A  household  service charge for every household as early as 2011 – (To be followed by a property tax ) Expected to be less than €150 per household.
Cuts in public-sector pensions in line with  last year’s public-sector pay reductions.
Lower tax thresholds in order to reduce  the 50% of workers who currently pay no income tax .
Closing off of  most tax shelters.
Spending cuts in excess of €11bn
A phased introduction of a new social charge to replace PRSI and the income levies.
Reductions in the  minimum wage rate .
Increases to student registration fees at third level.
More details will be given as soon as they are confirmed.

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