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THE GOVERNMENT HAS received some good news ahead of the announcement of Budget 2016 next month.
Its plans to increase the budget by between €1.2 billion and €1.5 billion have been ruled to be ‘economically prudent’ by the the Fiscal Advisory Council.
In its pre-budget statement, the body has stated that the expansion in spending should be feasible as long as the government fully comply with new budget rules.
In the past the council has rarely given the government an easy time when it comes to assessing their spending plans.
Earlier this year the watchdog accused the government of being too optimistic about economic growth over the next five years in its Spring Statement.
Warnings
The council has advised that extra spending should not increase beyond the upper €1.5 billion limit.
Its new position is based on more recent data from the Central Statistics Office.
It has advised that extra revenue produced by the economy growing should go towards debt reduction and insulation from potential international shocks.
Budget next month
The government’s budgetary framework was earlier laid out in the Spring Economic Statement and projected a structural budget deficit 0.3% of GDP by next year.
The budget will be announced on 13 October and so far we know that the extra spending will be split evenly between tax cuts and an increase in spending on public services and welfare supports.
Minister for finance Michael Noonan said in July that there will be a cut of at least 1% to the Universal Social Charge on salaries between €17,000 and €70,000.
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amazing how the government starts throwing a few bob around coming up to GE, they can stick there carrots up there xxxx, don’t be fooled by this shower of dictators
Amazing how the economy has recovered enough for that to actually happen; that after 4 years we are in a place to give back to the people who have suffered the most. If you’re happy not to receive tax cuts or to see social welfare recipients get a bit extra then that’s up to you, but I for one would like to pay less tax.
What’s the problem Mick if they have the headroom and it’s within the fiscal rules. Do you not think we deserve something back after giving up so much to get the economy back on track??
Amazing how a government can magically come up with extra money after a recession, just because GNP, tax intake and revenue is going up.
The three monkeys, waiting for Mick. Modern governance eh.
It would turn your stomach listening to these self enriching political careerists who only care about looking after themselves, their parties and their cronies. I hope people realise that nearly a 100 years after the Irish rising that we have only replaced British Imperialism with an Irish self enriching culture.
It’s not about the money for me, They were elected to bring change yet gave us more of the same FF messed up bog time but FG/LAB continued the same policies and corruption is still rampant. Bunch of Liars, never again.
Totally agree. I for one would like to see radical change in the way ireland and Europe works with regard to fiscal and social policy.
But many people who share these views (anti water charges etc) aren’t too sure where that stand will take them. I reckon most people would run a million miles from the chaos of the Syriza project and into the safety (albeit at huge cost) of Ireland’s austerity programme.
I would love to see Europe swing radically to the Podemos/Syriza/ corbyn model, but you need to be in no doubt where that leads.
If the goal of austerity was stable banking, job creation and economic growth then it’s been a huge success.
Yeah but only a few months back James, the same fiscal council were telling the Govt to use this money to pay down debt, and how essential it was to carry on reducing public spending…
Suddenly Sinn Fein became more and more popular as people became disillusioned with FG/Lb and now the Fiscal Council are happy to spend, spend, spend!!!
We get at least one article a day about how far we’ve come, how much extra we have to spend, how great GDP growth is etc. All very short term things. Any chance of an article that shows our current debt level and the amount of interest we pay on it each year, maybe showing what that could have bought if we hadn’t pi55ed it down the drain? Or is that too much to ask for in an election year?
Yes we have debt and we have payments, but so does every country; sovereign debt is necessary as generally sustainable over the long term.
Well to be fair, an actual figure (eg national debt = €184.03 billion at 31/08/2015) doesn’t mean anything on its own. It’s the sustainability of this debt that’s important and that’s determined comparing it to our GDP.
GDP growth means burden of debt/debt service reduced proportionally.
By saying that it doesn’t mean anything on its own is that such a debt would be tiny for a country like America, but huge for Burundi. Ability to pay/service is more important even than debt per capita.
Again Jason, can we have a look at the scale of our debt. Numbers can be sneaky, for example one million seconds is about 11 days, one billion seconds is over 30 years. Then there’s compounded intrest in there too, debt is neither good or necessary, unless that’s how you make a living like the Imf and now the EU.
Let’s see how they spend it. That’s what will make a difference to people. Yesterday was an example on how they get things wrong. People with disabilities on a 72 hour protest after cuts to services of nearly €160 million and government paying out €100 water bribe to everyone that will cost almost the same €160 million. Priorities need to be right.
GDP growth is temporary and can change very quickly. We have a MASSIVE debt burden which is long term and will not reduce unless it’s paid off. Looking at GDP and saying ah we’re grand as long as it keeps up is exactly the attitude that got us into this mess! The reality is there are going to be more financial shocks in the next couple of decades and Ireland being such a small country, with such a massive pile of debt already will be in no position to handle it.
I’m not arguing for the sustainability or volume of our particular debt, I’m just saying that a quantitative figure is almost arbitrary if not presented in a macro-economic environmental context.
They will target the groups most likely to vote for them so the middle class in general
@ little Jim – “Debt is neither good or necessary”. That’s nonsense. Capital borrowing funded and funds road construction when the government doesn’t happen to have huge reserves of cash. Are they not necessary?
Current borrowing can stimulate growth and covers the difference between income and expenditure. Such borrowing funds teachers and nurses salaries in part. Are they not necessary?
I think what you mean is reckless borrowing is neither good or necessary. If you don’t and stand by your original statement, please explain how would you close our current budget gap?
Hate to point this out but u do know we pay road tax in Ireland that goes towards fixing the roads , oh wait a minute no that goes towards something else , there is no need to borrow any money to run the country it’s just the clowns running it need consultants and advisors for everything and think it’s fine to spend imaginary money . Suppose we pay for cars that don’t cross tolls down in limerick everyday , that’s only 1 example
Malachy, I’m not sure if you’re willfully ignorant or just blindly stupid, but road tax is nowhere near enough to cover the costs associated with road construction and maintenance.
Further, we have a defecit i.e SPEND MORE THAN WE MAKE. But it’s fine, becuase according to you, it’s imaginary.
I have no idea what that car in limerick bit was about.
Sorry thought the limerick thing was well known , we pay everyday for cars that do not cross the toll in limerick which is roughly between 2-3000 short of a government guarantee made to a private contractor until 2041 . It’s money for the boys . More than a billion a year for road works , well I haven’t seen a pothole filled in years . We pay tax on everything yet they still need to borrow ,just add it on to the billions we already owe . So which party you support ? I think I could guess
Most tolls are subsidised to make up “shortfall”. We pay 1.2 billion for our water infrastructure while simultaneously spending 1 billion on a doppelganger billing company. The list goes on. The mismanagement of our finances has been staggering, we are a wealthy nation. The only thing that matters is compounded intrest, you will pay it or you will earn it. We’re no closer to earning it now than we have ever been but that should be a national goal.
One question Malachy – where are the government spending money that you don’t approve of. If you were the minister of finance, what specific spending cuts would you make?
I think the NTMA would beg to differ, they were doing a fantastic job building our national reserve.
Well Stephen u called me stupid and insulted my intelligence then u ask how I would spend less to run the country , now mayb I am the stupid one cause I did point out the taxpayer pays for cars that don’t cross a toll , well I would scrap that and find out which TDs signed off on this guarantee until 2041 , they should b sacked and bank accounts frozen till that money is paid back to the people . You made urself look really smart Stephen well done , hopefully mammy has some nice sweets for u after u finish school today
Leo, looks like he’s just seen his perfect partner bend down to tie his shoelaces.
Still not voting for either of the DOB parties.
Only way I would if there’s a full public investigation into the Moriarty Tribunal and anyone implicated in it has all assets are frozen until it’s completed and anyone found bribing or taking bribes are dealt a very very harsh prison sentence. Any monies gained by bribing or taking bribes will be subjected to being taken by The CAB like what happening normal criminals.
You want a tribunal into a tribunal?
Sorry my bad, I should of said. Independent investigation into the findings and criminal charges brought where needed. All of which is entered into the public domain with nothing retracted.
Glad to see you agree with due process John, irrespective of the findings.
The”lets have a trial, then a hangin” won’t be happy with you though.
MK, so you’re ok with elected public representatives taking bribes to award mobile phone licences?
I could just imagine the micky fit you and others would have if if it was a shinner caught doing the same.
This is of massive public interest and our “government” have done nothing about it for 4 years.
It’s not really up to the government, it’s up to the Gardai to investigate and provide evidence to the DPP. Unfortunately the evidence from previous tribunals cannot be used. I too would like to see people be properly brought to account.
No one on this Island believes that Government and Gardaí are not nterlinked at the highest levels, covering up croneyism, penalty points and Political Policing.
Considering that the Moriarty Tribunal report is politically toxic and career/government ending, It is Definitely in the public interest to pursue this, but there seems to be no political will or indeed from gardaí to investigate.
Stinks to high heaven, and everyone knows it.
same will happen with Siteserv and IRBC, nothing will be done and no report will be ready until after the next GE, even though there is an interim report due by years end – not a chance will that happen either.
Em, John, I was saying it was good you believe in due process.
Not sure what sparked your reply, but maybe you can point me to where I said/inferred that I was okay with the dodgy sale of state assets?
Bit let us guess, no tribunals into say the criminal activity of SF/IRA?
LOl @Robert, another deflecting Dinnybot.Quick look over there!! SF/IRA, change the record, it`s getting scratched a bit at this stage, like it`s in a loop on those words.
Both have questions to answer I’m sure you’ll agree Pearse.
Or do you favour special treatment for some?
No i don`t believe in special treatment, I am merely pointing out that yet another story linked to the government is automatically turned into “what about SF/IRA” .
By the likes of you and your ilk.
It is monotonous and boring, has far gone passed the stage of sinking into the public psyche.But the Whataboutery brigade somehow, curiously can`t seem to grasp that.
Pearse, please point out where, prior to your post defending SF, I mentioned SF and/or the IRA?
What record?! I’ll always be consistent. SF are s**m and any supporter of their or SF voter are brainless s**m. I’ll always be consistent with this.
Give with one hand and take with the other. Never were we taxed as badly as under FG/LAB. Fooled the nation on numerous occasions with lies. The austerity hardened electorate will have their say at the polls. Try as you may Mr Noonan. You can’t give back a pittance of what you took. Fool me once and all that…..
Absolute rubbish. You obviously weren’t around in the ’80s. VAT rates of 30% plus. Income taxe rates at 60% plus.
Untrue. Taxes were higher in the 70′s.
Willy, if you’re not old enough, ask your parents about the 1980′s. Tax and interest rates were oppressive. Unemployment was worse, people were actually poor and those lucky enough to actually work were taxed to the eyeballs, on a proportionally lower wage.
Never is word thrown around a lot by people who were in still in nappies in the 90′s…
Never had a phone without Internet either… Have you? Doesn’t mean they didn’t exist
Very true lads, but dont forget, up until the 90′s, if i had a salary or £30,000 a house would set me back £50,000 – £60,000
Now on a salary of €30,000 a house would cost €150,000 – €200,000 putting it out of reach of many
Many jobs paying 30k in the 80s are probably paying at least €100k now John.
I don’t by that Reg, I knew people in what you could call semi-skilled labour in manufacturing and would come home with that. The same work would not offer that sort of money today. Would be on assembly lines and such.
It’s true there were less of those jobs. But that balanced out too as one person could pay their mortgage and fed, clothe and educate their entire families on such an income.
A person on a gross salary of £30,000 in 1980 would be on an equivalent salary of of roughly €137,000 today based on inflation over the years. You don’t have to ‘buy’ anything, that is based on inflation figures from 1980-2014
we came through the 1980′s without property taxes.
£30k would have been a very high salary in 1980. You would also have lost more than half of it income taxes. A salary of €100k would lose 40% in income taxes currently. The cost of housing, in Dublin in particularly is a problem. Society as a whole is not served well by high house prices. Not sure we’ll ever learn though!
Don’t kid yourself, we’ve always had propert taxes in one form or another. High stamp duty rates for instance.
Jesus – if you were on 30k punts in the 80′s you were doing extraordinarily well – if you were on 30k in the 80′s then you may have got 1.5 that on a mortgage – paying back double digit interest rates.
What we are seeing here Reg is the emergence of the “Celtic tiger” pups who were pretty much kids 10 years ago, they think that the wealth and extravagance of the bubble period is the “norm” , when if fact it was a glitch.
Since the 90′s we experienced growth, jobs, increasing wealth – we blew it all and we are back to tack as they say, and yet still back growing – which is a remarkable achievement.
These people spent have memories prior to 2000 Jason. Apparently the 70s and 80s were a blissful time with comeley maidens dancing at the crossroads.
It’s called a bribe budget !! Nothing more
When you check your pocket in january, you’ll discover its not even worth calling a bribe
Making promises they cannot keep (just like the previous Gov’t)!. History has shown taxes cannot be cut and spending increased. There are hidden taxes somewhere. Or maybe they will copy Merkel by rolling back spending shortly after the election.
Just get rid of USC it’s a tax on working harder, increase property taxes to pay for it.
Hopefully soon, I think it will eventually go for most of us, on a phases basis. But the hope will need to be plugged elsewhere!
No. Abolish the property tax and close down the tax loopholes.
Unless things have changed come the next election and voting to replace the current with the something similar what ever is given back will be taken again plus more, history repeating itself.
Wait and see what happens when a similar government is back in power within the first 2 years WC will be payed and the so called low car tax will increase a long with a few new taxes.
The debt is still there and must be payed back and this will be done!
.”The government’s financial advisers are totally cool with plans to spend an extra €1.5 billion”
Did the Journal let the work experience kid write the headline for this article? Seriously, it sounds like a 12 year olds parlance, omg, like totally ,like, you know?
Anyone concerned about how mental health will fare in the budget can make their voices heard by signing a petition to Government calling for investment in community based mental health services and other support that can help people recover. Please sign and spread the word to show there are votes in and support for mental health – the petition is on mentalhealthreform dot ie
Bribes when the gov’t come up with them, the pillars of a socia
….pillars of a socially progressive economic policy when the LLA announce…..hmmmmm
Tax the rich MK.
As long as it’s the other guy Jason, most people in Ireland don’t care who’s paying.
Problem is Mk, the other guy(s) is always the same guy(s)!!
Would prefer to see any money put into actual proper job creation..not ce schemes and jobbridge and the like..too many people out there like myself..with over 25 yrs working and paying taxes but lost our jobs..not 50 yet but future is looking bleak..there’s a lot of us for whom emigration etc is not an option .mortages..kids..if any HR people read this..would be nice to get an actual acknowledgment when a job application is made or a cv mailed..small thing but would be appreciated..
You’re exactly the kind of people the Government needs to target Kieran. Get you into training and actively assist you to find work and set up interviews etc. I was made redundant in the early noughties. And I was dismayed to see the lack of action or unified thinking from the Dept of Social Welfare. Not on Dept member took me aside to go over options, my CV, advise me of roles, advised me of any training etc. I was very lucky in that I borrowed money and went back to Uni and got a Masters and got a job straight away. I wrote to the Dept about my experiences and have my opinion on what should be done to assist the unemployed. They actually gave me a meeting with some senior people, but nothing changed and it was just lip service. There needs to be a profound change as to how the Government approaches this issue. More joined up thinking. A lot more interaction with recruitment companies and the private sector. I wish you all the luck in the world in trying to find a job. Never give up, keep trying. And recruitment companies are indeed the worst. It’s money for old rope for them, their people skills are terrible.
You need to ask the question, would the gov have money to spend if there was no election?
If a guy has 5k in the bank, and he wants to buy a car worth 10k, where does he get the money? (borrows it).
If the guy has say 12k in the bank, and still wants to buy the 10k car, finances are gonna be tight for him
in the future. He’s gonna have to make sacrifices.
I’ve seen articles on the journal about the gov making lists of factors that could happen in the future that could damage ireland, all of them external factors like isis and global recession.
In reality, the biggest threat to ireland is poor national governance by these eejits in gov.
In fact somethings happening now seem eerily similar to just before the financial crisis, clueless incompetent politicians paying themselves too much, running the country like me bean, ignoring crys for help from the public, spending too much on themselves and buying an election, then running short of money, getting money the only way they know how, raising taxes.
Thats Mr Bean, not me bean.
Very good cause, signed.
Muhahahaha! The electorate can always be bought. It never fails.
The government’s financial advisers are totally cool with plans to spend an extra €1.5 billion. The government are paying these advisers and in that case the advisers will say what ever their employer tells them to do. Attempt to buy an election. Will Ireland see a government that has vision and show real leadership in tackling the basic problems, homelessness, people lying on gurneys in hospitals, people starving, with with special needs, carers (who save the state an enormous amount of money), people being forced into Jobserve where their actual is less than if they were on the dole. Thank you FF, LAB, FG that you have brought Ireland back to the famine times.
The Fiscal advisory council are a useless body of experts that give govenment advice. In june they said 1.5billion was too much of a giveaway in the budget! Now they say that sum is alright to spend, a few short months later. Did they apologize, No.
Last year the same silly advice was given to mr noonan before the 1914 budget, he ignored their advice went along with what he had promised! What happened, our country went from strenght to strenght, so this year he is in the wonderful position to give irish people the chance to share the prosperity they so richly deserve, and share in the 1.5billion, maybe more share-out.
have your say