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IN THREE DAYS time, Budget 2023 is set to be unveiled by both the Finance and Public Expenditure Ministers after a long summer of kite flying.
Paschal Donohoe and Michael McGrath will both step up in the Dáil at 1pm and detail not only their spending plans for the year ahead, but also unveil a separate cost-of-living package that will aim to reduce the burden rising costs are having on the public.
This is potentially Donohoe’s last time presenting the Budget as Finance Minister, with McGrath slated to take up the role in the December reshuffle when Leo Varadkar is set to take up the office of Taoiseach.
The two money ministers have about €6.7 billion to play with in the main budget, while the Government is yet to announce a final figure on the latest cost-of-living package.
Ahead of the big announcements on Tuesday, what exactly can we expect from Budget 2023?
Cost-of-living
It has been widely flagged in advance that there will be a cost-of-living package alongside the traditional budgetary measures.
One key measure that will be within the package is a series of universal energy credits, similar to those that were provided in the previous cost-of-living package in May.
It’s expected that there will be three €200 credits overall, with one slated to land before Christmas.
The remaining two will be applied to household accounts in the new year.
It’s also expected that there will an increase to in the Fuel Allowance, with changes to the threshold that a person must reach to receive the payment also on the cards.
A significant social welfare package has also been flagged, with increases mooted on a number of payments, including a pension increase.
In August, Tax Strategy papers that were published had floated the idea of increasing social welfare payments to keep in line with inflation.
While there was initially some movement towards a €15 increase, in more recent days it has been suggested that a €10 increase would be more realistic.
Alongside any increase, there has been some speculation that there could be a bonus social welfare payment made before December, which would be separate to the typical Christmas bonus.
Childcare costs
Another key focus in the budget is likely to be around childcare costs, with fees set to be cut by 50% over the next two years, with a €200 a month reduction expected this year.
Previously, The Journal reported that subsidies on childcare would be increased to help reduce the cost on parents. Additionally, overall price caps are expected.
This follows on from core funding increases on childcare being announced and some changes to pay agreements for childcare workers.
A senior source has also told The Journal that a double payment of the €140-a-month child benefit payment is being considered by the Government.
This would see parents with one child receiving €280 before Christmas including the one-off payment.
Tax changes
Some of the key measures within this year’s budget are likely to be tax-based changes.
These changes likely won’t be as transformative as massive changes that were made in the UK yesterday, including the scrapping of the top rate of income tax for the highest earners.
While the Tánaiste has fought for his proposed 30% income tax rate, he did tell RTÉ last week that he was not planning to “go to war” over the measure.
Minister McGrath had previously poured cold water on the proposal, saying in mid-August that implementing a 30% tax rate in such a short period of time would be “challenging”.
A wider indexation of existing tax bands is within the current Programme for Government, with support within Fianna Fáil for these measures.
Fianna Fáil Minister for State Sean Fleming had previously argued that indexing tax bands and indexing tax credits would be a more straightforward way of putting money into people’s pockets.
It’s also likely that there may be changes to tax bands alongside some tweaks to the USC threshold.
Alongside changes to income tax, there are some proposals for tax breaks for both landlords and renters as part of efforts to slow the exodus of small landlords from the private rental market.
Varadkar has signalled however that if there are any concessions for landlords, there must be concessions for renters.
“It wouldn’t be fair to say that we’re going to give tax concessions to landlords, in order to keep them renting, which would be a good thing, but then to say to renters ‘well there’s nothing in it for you’ – that wouldn’t be fair,” Varadkar said.
The Tánaiste has also previously confirmed to The Journal that workers could be in line for an increase to the tax-free bonus, with Donohoe working on a proposal to allow employers to give an employee up to €1,000 annually, up from €500.
Currently, employees can only receive a benefit valued at €500, tax free, each year from their employer.
This bonus can not be provided in cash but can be in the form of vouchers or cards that can buy goods and services.
A Vacant Property Tax is also set to be a part of Budget 2023, with the Finance Minister announcing the measure in July as part of efforts to reduce long-term vacancy.
Public transport
It is likely that the 20% reduction in public transport fees will be extended, with some sources stating that the fees could be cut further.
This measure was initially introduced in the initial cost-of-living package last May.
Fine Gael in particular are pushing for the short hop zone, which caps fares, to be extended into commuter counties outside Dublin, including Kildare, Meath and Wicklow.
When asked by The Journal whether or not further reductions were considered, the Taoiseach said that while there were “huge cost implications”, he said cutting costs went along with Ireland’s efforts to combat climate change.
“What I like about that proposal is, and there are huge cost implications, but it dovetails with our climate change agenda. So you have a cost-of-living measure, which in medium-term policy terms makes sense for climate change, it would get people out of cars and into public transport. And so that’s something we would be examining in a positive light,” said the Taoiseach.
Other measures
It had also previously been flagged that students should expect a decrease in college fees.
There will also have to be money set aside by the Government to pay for the recently agreed public sector pay deal, which was agreed last month.
A 6.5% increase in public sector wages was agreed upon in late August, with ICTU unions set to ballot their members on the proposed increase.
With reporting from Christina Finn in New York
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Iran wants everyone to believe they have no plans to develop nuclear weapons yet won’t cooperate with IAEA inspections, well you can’t have your yellow cake and eat it too.
What about Israels 400 nukes ? I mean i am sick of people lambasting Iran , they have every right to develop Nuclear Power as they are signed up to the NPT , something the State of Israel is not signed up to , secondly if i was Iran i would develop Nuclear Weapons as a deterrent because the are being surrounded by threats of invasion , the though that Iran will get a Nuclear Weapon and fire it straight from the production line at Israel is absolute bull, Israel’s ally the US has over 5000 nukes , Israel has over 400 by all accounts , Iran has plenty of oil, a huge cultural society , why would they commit suicide ? This western propaganda is really getting annoying , Iran is not going to attack Israel because it would be plain suicide , they know it and the US and Israel know for sure….jesus will they just let people alone for god’s sake !!
Iran has been subjected to more terrorist attacks than all the other countries combined. Look at all the assinations of Iranian scientists. If I was to start branding the term terrorism around I would use it re Israel and US. Look at the evidence. Stop listening to the rhetoric.
Ok, I’ll stop lambasting Iran for their pursuit of nuclear weapons, though no one has suggested that they would use their first one in a suicidal first strike, but what I will not stop doing is point out that Iran will not leave my brothers and sisters in the LGBT community and continues its campaign of murder, torture and oppression against them for the benefit of someone who enjoys their full civil rights in nice, safe, neutral Ireland.
Now go on Johnnathan, accuse be of being a western dupe brainwashed by Yankee zionist imperialist propaganda like you do to anyone who disagrees with you.
I wont accuse you of anything David, just pointing some facts that some people have trouble digesting for some reason , you talk about torture ? America is torturing on a daily basis in Guantanamo Bay , they pretty much destroyed Iraq , Libya and Afghanistan on a pack of lies, sprayed enough depleted Uranium all over Iraq to keep them poisoned for the next billion years , but that is ok , they are so-called democracy , which can not do any wrong !!
But David the US, UK , FRANCE , ISRAEL…..are saying there are going to use the first one because they want to bomb their NUCLEAR FACILITY , i mean how crazy is that ? Bombing a Nuclear reactor which the consequences of such an act could be catastrophic for the Iranian people !!
Anything good on foxnews? Havent had my fill of western propaganda today.
So the Qods Force or the Basij have never tortured anyone or do you only condem torture when its practiced by the US and UK?
David, are you trying to justify one nation commuting torture just because another nation does it?
No, but if you read though the whole tread, you’d realise that’s what Johnnathan was saying and I was calling him out on it.
Is anyone surprised that Morsi is opposed to Shia Iran and Assad’s Shia led Syria? The media seem to be… He’s a Sunni and affiliated with the Muslim Brotherhood for the last two decades. The Muslim Brotherhood is a Sunni dominated organisation. I reckon that Morsi wants to see Egypt gain regional hegemony rather than a Shia state such as Iran – even if it means jumping into bed with the Saudis. How else can he criticize Syria’s response to the uprising but not condemn the Saudi and Bahraini reactions to their own protests?
Hopefully Morsi and Egypt can gain some regional influence and pursue peaceful changes in the Arabian peninsula so there is not a repeat of Syria and Libya. Up ’til now, as soon as the western powers stuck their noses in, things got much more violent. Another benefit of an Egyptian hegemony would be that he might be able to keep Israel under control.
My worry is that the Muslim Brotherhood are a conservative Islamic organisation that lists Sharia law and Quranic teachings as goals. To enforce that even harder and further across the Middle-East and Maghreb would be a step backwards. Hopefully Morsi turns out to be more liberal than his affiliated organisation.
How come the article mentioned nothing about Pakistans Foreign Minster coming out and stating that US drone attacks were unlawful, illegal and unhelpful. The Foreign Minister asked again that the stone strikes be stopped. Is that not terrorism by the US on Pakistan, a soveirgn state? Who is the US to talk of terrorism. What about the former IAEA inspector coming out and critiquing Western Intelligence re Irans nuclear programme.
Question can someone name the only country that dropped Atomic Bombs on a defenseless people and sent in a team not to help those innocent people but to survey how the radiation affected human beings ? Historical fact !!
For the red thumbers , do you not know the answer ? I will leave you in suspense !!
Does anyone know the answer ? I am still waiting and kinda shocked that no one seems to know the answer..wow !!
Anyone else who you hold the actions of their grandparents against them?
After recently visiting Vietnam, I really don’t see how the Americans can call anyone a terrorist !! Even though it’s old news they still destroyed millions of lives by using agent orange in Vietnam. They then paid their own war vets compensation for the effects agent orange had on them and any of their children but still refuse to compensate a single Vietnamese citizen! For such a young nation their arrogance in thinking that the rest of the world needs their help is outstanding!
Very well said Kevin !!
Iraq pretext “weapons of mass destruction”
Syria pretext ” chemical weapons”
Iran pretext ” nuclear weapons”
it’s the same BS because the fluoridated zombie masses who actually believe associated press believe the lies. 30 mins of research will prove this is all propaganda.
After November id stay well away from the Middle East.
yip. And dont fly this Sept either going by the web.
What’s that about Jason?
Sounds like dinner at my house, he done this, she said that,
Morsi backing Syrian ‘rebels’ and talking of oppression. Members of Christianity are being forced out of Egypt because of oppression there. Morsi has just sought a loan from IMF aswell so he is and will forever be a puppet for US.
Mercenaries I think is the word your looking for. Funded by the west. Do a little research and get back to me
NATO openly support al quada and fund their “rebellion”. The “rebels” are al quada. are these not the same guys who flew planes into the WTC, bombed London and who this war on terror is against. Also it’s ok when rebels take a mans family hostage and force him to drive a truck filled with explosives into a government check point.
No serious person agrees with that. al-Qaeda type groups are part of the opposition, but only part of it.
Petr what defines a serious person ? Someone who believes nothing but the official government line ? Like the official government line on Iraq ? Or the official government line on Libya ?
Johnnathan, you seem fine to take the official line of the government of Iran.
@david have you been around the last ten years ? The war in Iraq was based in utter lies and fabrications by security agencies, this is an historical fact !! so what is problem ? Have you trouble processing this or what ?
I’m well aware of the fabrication’s used to justify the war in Iraq, that’s not what we’re talking about though but nice try changing the subject. But might I suggest to you that their are more Intelligence agencies on Earth then the CIA and MI6, the Qods Force for example.
@david i am not changing the subject , this is absolutely relevant , if a car sales man sold you a car that was not exactly what he said it was , would you buy another car off that sales man ?
“I’m well aware of the fabrication’s used to justify the war in Iraq” so you just have made my pint for me !! Do you think this was a one time thing ?
Point i mean sorry lol, i have a cool pint on my mind
I don’t see how the untrustworthiness of the US government relates to the trustworthiness of the Iranian government. Just because one car salesman sells you a lemon doesn’t mean his chief competitor won’t do the same.
Don’t bother wasting your time David – Johnnathan, George and PeopleofIreland have a long history of dismissing every information stream coming from the west as evil imperialist lies and propaganda and championing everything coming from Russia/Syria/Iran/China (delete as appropriate) as being a true and accurate picture of the struggle of the downtrodden masses against the evils of the west.
Most sensible people (or serious people, to quote Petr) recognise that all sides engage in propaganda and the real truth lies somewhere in between the stories being pushed by either side.
And that’s an ever increasing problem, Mattoid. It seems there’s no unbiased news outlets left. I like the journal when they compose their own articles and reports but unfortunately for many world stories they repeat the propaganda from the AP (and to a lesser extent AFP) because they don’t have anybody overseas to do first hand reports.
shite n I just got a job doing a road sweeper in iraq. ppl calm down please n just blame the americanz .. r the french..lol
George, johnathon and Barry- the troika of misinformation and distortion on the middle east. I see petr is changing his tune.
How have I changed my tune, Declan?
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