BUDGET 2016 HAS been unveiled and the reaction is mixed.
The budget, which has been widely described as a ‘giveaway budget’, confirmed many of the predictions and kites that were flown in the coming days and weeks.
It brought tax cuts, free GP care to under 12′s and a boost to the minimum wage.
Finance Minister Michael Noonan and Minister for Expenditure and Reform Brendan Howlin unveiled a €3 boost the old age pension, while the Christmas bonus was restored by 75%.
So how did you fare in the final budget of this current Government before the general election?
Here’s the breakdown on the winners and losers.
WINNING: Workers
Michael Noonan says all workers will get an additional week’s wages due to the tax changes made in today’s budget.
From January 1, around 42,500 workers will be completely removed from paying the Universal Social Charge, USC, while the entry threshold will increases from €12,012 to €13,000.
USC Rates will be cut from 1.5% to 1%, from 3.5% to 3% and from 7% to 5.5%.
Minister Brendan Howlin also confirmed that the minimum wage will be increased to €9.15 an hour from January 1.
In terms of job creation, 2,260 new teachers will come on stream in 2016, including 600 new resource teachers while an extra 600 gardaí are to be recruited next year.
LOSING: Jobseekers under 25
There will also be no increase in the jobseeker’s allowance for under-25s, which was cut to €100 in Budget 2014.
WINNING: Pensioners
LOSING: Start ups
The Budget has been criticised for not supporting start ups. It has been described as ‘incredibly disappointing’ and as encouraging startups to leave Ireland.
WINNING: Social welfare recipients
The Christmas bonus, which was partially restored last year, has been increased by 50% for people on weekly long-term social welfare payments.
Today’s announcement means a jobseeker receiving €188 a week will get an extra €141 at Christmas.
LOSING: Smokers
The price of cigarettes is to rise by 50c, bringing the cost of a 20-pack to €10.50.
Retailers Against Smuggling say this move means that smugglers are ‘laughing all the way to the bank’.
WINNING: Parents
Child Benefit will go up by €5 a month to €140 next year and the Respite Care Grant has also been restored.
It was also announced that fathers will get a paid paternity leave of two weeks from September of next year.
In childcare, it was revealed that all children will avail of free preschool/childcare from age 3 to 5 and a half or when they start primary school.
While 8,000 childcare places were announced to support parents in low paid employment.
LOSING: People who wanted a tax of fizzy drinks
The sugar tax didn’t happen, despite the fact that the Health Minister Leo Varadkar had written to the Minister Noonan asking for a 20% tax on sugar-sweetened drinks in an effort to tackle obesity.
Irish Heart Foundation said “by failing to introduce a tax on sugar sweetened drinks the Government is prioritising the wealth of multinational companies over the nation’s health and particularly the health of children”.
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