The Minister of Finance, Brian Lenihan announced the Budget for 2010 in Dail Eireann this afternoon. Although he forecast a return to positive economic growth in Ireland in the next 6-9 months, he set the scene for the budget by declaring that €4 billion is to be cut from overall expenditure to reduce the Budget Deficit, with a cut of €2 billion from day to day spending.
Some of the key measures include:
- Public sector pay bill to be cut by €1 billion. Pay reduction for high earning public servants will be as follows:
Salaries from €125k to €165k - 8%
Salaries from €165k to €200k - 12%
Salaries from €200k and up - 15%
- From 1st Jan 2010 all public sector pay will be reduced as follows:
Salaries Up to €30k - 5%
Salaries from €70k to €125k - 10%
- A Carbon Tax is to be introduced of €15 per tonne. Petrol or Diesel tax will apply from tonight. Heating Oil and Gas taxes will be introduced from next May. Low income families will benefit from an allowance to offset some of this additional cost.
- 0.5% Reduction on standard rate of VAT
- Taoiseach salary is to be reduced by 20%. Ministers and General Secretaries salaries are to be reduced by 15%
- Consumptions taxes to be reduced. Alcohol excise duty to be reduced as follows:
12c Beer / Cider
40c Spirits
60c Bottle of Wine
Please visit the Budget 2010 page of our website for more details on the changes introduced.
I would like to hear your initial reaction to the key changes that were introduced today. I will try and answer any comment raised in relation to the budget. To comment on this post, click on the comment link below.
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