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WE ARE A couple of days out from this year’s Budget, and Finance Minister Paschal Donohoe has his work cut out for him.
The government is now predicting a deficit of €21 billion or 6% of national income for this year.
For last year’s Budget, the minister played down any expectations of giveaways, telling all around him that he will be “safe” and “cautious” due to the possibility of a no-deal Brexit on the 2020 horizon.
One year on, Donohoe has to contemplate that exact same scenario, but he also has the added pressure of a pandemic.
In the days before the 2019 Budget, all the talk surrounded the deadlock over the Irish backstop. On Tuesday, when Budget 2021 will be announced, Donohoe has to get the balance right between the country’s long-term financial standing and providing the necessary supports for those out of work because of Covid-19 restrictions.
At the beginning of this month, Ireland recorded an exchequer deficit of almost €9.4 billion in the year to the end of September.
The total revealed by the Department of Finance compares with a €38 million surplus in the same period last year.
It is a “very, very big deficit”, Donohoe has said.
So what can you expect?
The budget will include details of a major recovery fund to deal with the ongoing impact of Covid-19. The government is also working off the assumption that there will be a no-deal Brexit and that a vaccine for Covid-19 will not be available next year.
In line with the programme for government, priorities in Budget 2021 – outside that of Brexit and Covid-19 – will be health, housing and climate change.
Government is expecting to spend up to €9 billion on expenditure related to Covid-19 next year.
Public Expenditure Minister Michael McGrath brought a memo on expenditure strategy to Cabinet ahead of Budget 2021 last week.
Around €900 million will be spent in order to meet existing services across all areas. This is in addition to €1 billion which is ear-marked in pre-committed current expenditure and an increase in €1 billion on capital expenditure next year.
The government also raided the Rainy Day Fund. It was designed to be used for emergencies. Using that framework, it was decided not to use it for Brexit or housing last year, so the fact it has been emptied this year says a lot about where we’re at.
Income tax
There will be no increase in income tax in the 2021 Budget, Donohoe has said.
“Our personal tax receipts are holding up quite well, and in terms of what that says about our economy, it does indicate to me that momentum is building in our economy,” he added.
“In terms of the budget 2021, September is always a significant month in terms of tax receipts and it’s the final piece in the jigsaw before we make a call about what our tax collection will be for the year and the following year’s budget,” the minister said last month.
The programme for government also commits to no increase in the Universal Social Charge (USC) – although there might be some tweaks to bands.
In terms of VAT, the hospitality sector has been calling for further cuts in light of the pandemic. The government steered away from it it in recent years, but significant pressure has been placed on representatives that it might just get get the green light.
Social welfare
There has been unprecedented spending by Government on health and social welfare as a result of the pandemic, and there should be other big announcements made on Tuesday.
There have been calls to restore the Pandemic Unemployment Payment to its initial level of €350 per week – but government seems adamant that to do so would impede on the extended time period the payment is due to last for.
There are likely to be changes and tweaks to the scheme, perhaps on a sector-by-sector basis, with additional supports for those working in areas that have been impacted the most.
The Taoiseach told TheJournal.ie that some workers might be able to take up jobs, while also retaining their payment.
Pressure has been mounting on government to help a number of people in areas such as hospitality, tourism, entertainment and the arts.
Publicans, bar workers, DJs, comedians, actors, cinemas, event organisers, taxi drivers, and those in the gig economy have all be calling for additional supports after their businesses were mandated to shut up shop.
The Taoiseach said “creative” thinking has been going on behind the scenes to figure out how to support such workers, particularly through the welfare system.
However, a supports package worth millions for live gigs and the music industry is expected to form part of the Budget.
In terms of the State pension, a €5 increase has almost become customary, but this year it might not see the bump.
No decision has been made at this point on the Christmas bonus, with McGrath saying that at this point in time the exchequer is in a very strained position. Its cancellation though would be a tricky manoeuvre for government.
The Employment Wage Subsidy Scheme (EWSS) will be extended beyond 31 March, 2021 – its current scheduled end date.
There will be no wealth tax, Donohoe has also said.
Green initiatives
Carbon tax increased by six euro per tonne last year, so there will be another increase again on Tuesday.
Donohoe said it will be ring-fenced to protect those at risk of fuel poverty. He also said that funds will go towards making progress on retrofitting homes for energy efficiency.
All eyes will be on petrol and diesel prices next week, with businesses likely to be unhappy with the additional costs while struggling to stay above water.
The Government will spend €1 million a day on improving cycling and walking infrastructure, and in terms of electric vehicles, there will be commitments to ramping up the roll out of charge points.
Keep an eye out for grants in renewable energy and retrofit schemes also.
Housing
Housing Minister Darragh O’Brien is keen to extend Ireland’s Help to Buy scheme, which gives a tax rebate of up to €30,000 to first-time buyers. Social housing will also be part of a key budget announcements next week.
An affordable housing scheme was meant to be launched last month, so there could well be news of this on Tuesday – perhaps the good news story of the day.
Brexit
Government also has to plan for the worst, so it is likely that there will be significant resources allocated to those sectors set to be hit hardest by a no deal.
While the July Stimulus rolled out loan and grant schemes, it is likely that further announcements will be made on similar items.
Booze and Cigs
With government literally looking down the back of the couch for any spare pennies, it is almost a certainty cigarettes are set to rise next week. Some question marks however remain over whether there will be a hike in alcohol given the precarious position publicans have been put in over the last few months.
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How many nails does one coffin need?
A chain, a lot of weights and brought out and dumped in the Mariana Trench.
As long as government will cover up the mess there will not be an end to the nails in that coffin.
It isn’t over yet. The Troika are coming to whip their puppets into shape.
I’d say in that coffin is the vampire known as Irish Water.
Stake through the heart should do it.
IW bashing is great craic and all, but there were 1507 valid data breach notifications in Ireland last year. Pobody’s Nerfect.
I was sent three emails today in error. They were genuine medical notes from the NHS in the UK. No big deal, this happens with frightening regularity.
It’s called Human Error !
At this stage we don’t need nails…..We need a great big fire! Feckless, useless, clueless, a complete and utter disaster. Enda…you can f% cm right off with your reduced charges. This company is not fit for purpose. In fact…I want any monies paid to Tierney paid back. Gormless tw#t !
DAVE
watching that documentary on youtube now, nice heads up.
As many as we can get in it before we get the cement mixer :).
I highly doubt that David, farfetched to say the least
Meter through the heart more like!
Performance bonus how are you
It’s time IW was shut down. They’re so bad they can’t even do corruption well.
Call a general election, this is getting ridiculous , we will not accept this Quango, it has to be abolished or we will abolish FG and Labour. The back benchers in FG are going to lose all their seats if they don’t get rid of Kenny, Labour are beyond saving, they are facing meltdown just like the Green Party!
Your FG spin isn’t working David, your party is finished, put an end to this farce!
IRISH WA(S)TER(S), NEPOTISM KNOWS NO C0RDON…..BLEU SHIRTS!!
.
Kenny and iphone Joan must have some envelope waiting with a lot of goodies to continue with this debacle. Shame on Laubour you don’t represent what Mr. Larkin set out to do. As for FG. I would not lower myself to comment
Irish water accidentally sent me one of their “fvck it, sure its November” bonuses there last week……
I see that the million euro per month consultation fees are paying off. Fantastic value for money.
Deaglan and for a recap of Consultation fees see here:
http://www.thejournal.ie/irish-water-consultants-spending-1263769-Jan2014/
Clowns
Enough said eh.
Nothing more than we have come to expect really.
If Nancy Noonan, Howler Howlin and the rest of the cronies are issuing statements about charge rates, first bill issue dates, compliance notifications for non payment, allowance guidelines, non payment of staff bonuses…..what are we paying Tierney for ?
Who is to blame for this unmitigated disaster ? Is it Kenny ? Is it the EMC ? is it the Cabinet ? Or is it the Government backbenchers for supporting such madness ?. Remember the famous electronic voting machines well they pale into insignificants in comparison to this. I would go as far as to say this is financial treason. Someone should be before the courts answering charges.
You would think after 50million worth o tuition you couldn’t make mistakes
Just shut the whole system down now.
I am so sick of this company. Make it go away
Water mess
Hang on a minute! Does that landlord want irish water to tell him if the tenants have registered?? Thats none of his business. No wonder he doesnt want to be named
Sam,
My understanding is that Irish water contact the landlord, the landlord requests that the tennants sort it out, they are entitled to know I suppose, whether or not they should be expecting a follow up or they can breathe easy.
Why? He can request the tenants to register but whether they do or not is not his business nor should he be asking IW if they have. That is between iw and the tenant.
Quite right Sam…tell Irish Water and the landlord to stick it where the sun don’t shine.
Unfortunately then the landlord can you tell you to up and leave. it’s part of many rental contracts that you must pay all bills and charges related to the place you are renting (well it says that in mine anyway). They can legally tell you to leave if you dont pay. Not nice, especially for us who can’t afford what bills we have, but the landlord can do it, and from this article can obviously find out if you have registered or not as they are the owner of the property.
Surely tenants will not be expecting the Landlord to pay for the water that they are using?
Amy, this unfortunately is the same issue I’m having, if I don’t sign up there’s a good chance I don’t get my deposit back, or worse, future letting agents/landlords will be told I don’t pay my utility bills.
I’m holding out as long as I can, praying IW is abolished, but I think after tomorrows limp announcements it’ll start to put a lot of pressure on tenants.
utility bills have nothing to with a landlord, even if you don’t pay your bills and leave the house in arrears, the bills remain with the account holder and not the house, even if they cut the house off , the land lord or next tenant will get reconnected for free.
think about it, if you are going to move house, do you not inform the utility companies of your new address prior to moving. any issues would be sorted out before you move in with no requirement from the landlord, do utility companies ask you for your landlord derails, NO, and once the utility company have a valid account holder they want your buissiness. if you are a tenant then they would generally require a deposit from you
Even if your tenancy agreement states you have to pay utility bills etc. the landlord cannot request details of your account and neither can any utility provide it. Data protection act covers this, similar to the fact that a landlord couldn’t ring a tenants bank to find out if the tenant has enough money for the rent. So not only did IW mess up emailing details to a different customer, they breached the tenants rights
Wow, lads lads lads
More proof of how much this shower truly care about their job and their customers. nothing
The most criminal thing about ur all is that the government won’t stop it now. The country is in turmoil because of it and even there own supporters, many of them, have spoken against it, councils have voted against it. 550 million in meters and its supposed to be a flat rate now ? What exactly are staff being paid for right now ? It is sickening meanwhile funds to rape crisis centre are cut, homelessness spirals out if control, not enough beds in hospitals. If I was Leo Varadker I would run and take that job in Canada because they will be the most hated bunch if politicians in the history if this state.
It’s a circus set up by a bunch of clowns
Bad judgement to employ a CEO that looks like Ivor Callely
Inda did not think that one through !
This is what you get in this country for being compliant to a sham company.
I’ll bet they won’t send their bonuses to the incorrect recipients!
It’s get better every day that before the soft sell tomorrow when we told everything will be just fine just sign up for a modest amount and watch it explode in the years to come
And they wonder why most of the country still hasn’t signed up to this half arsed quango.
I believe that the root of this problem is the political pension system we have in this country. Once a TD loses their seat, their pension(s) will ensure they can continue to live the lavish lifestyle that they’ve become used to while in office, even though they’ve been fired by their employer for their inability to carry out the job they were paid to do.
So, politicians have become unaccountable for their actions and apathetic towards the very people who voted them in, and so forcing crony organisations like Irish Water (and all its costs) on the citizens is nothing to them. More worryingly, being voted out of office is nothing to them. As a result, the “establishment” in Ireland now consists of power-crazed sociopaths and self-entitled parasites.
This pension culture needs to stop and the political system needs a drastic overhaul. Otherwise problems like Irish Water will continue to materialise and to fester, and the Irish people will have to continue to slap them down.
Parasite TDs who are only interested in feathering their own nests are not of the standard on which this country was founded and are a huge surplus to requirement. We need to democratically get rid of each and every TD who was nurtured on this system.
Well said. Couldn’t agree with you more. And take it back from all the former dodgy politicians who are still living like kings. Re examine every dodgy deal that the countless amounts of them did down through the years which have allowed this country to be plundered. Make paupers of the lot of them. Easier said than done though unfortunately.
I think this comment sums up perfectly all that is wrong with this political system. We need these fools to be held to account for their mistakes, past and present.
I love the image of Tierney handing us a glass of water with one hand and a water meter in the other. And gold rings on both I might add.
“It’s like here is your water son. Wa wa wait you have to give us the money first.”
What a vulture capitalist.
So clearly photoshopped too. Who has ever seen tap water that colour in Ireland!?
They couldn’t direct a stream of their own piss!
Haha this circus just keeps on giving more entertainment! Its all good though the clowns wont get a bonus untill January, bless them! Slightly off topic but I saw a list of every tax we pay posted here somewhere recently, I could recite the majority of them but does anyone have a copy saved they could post me? Thanks!
Anyone know what these new ‘Compliancy’ measures for us people who refuse to pay this tax set to be introduced by the gubberment tomorrow will entail?
Hi hulk, I dunno for sure but like I said before the gov plan is to reach a tipping point. They will buy a few more people who are afraid, they came out with concessions for unemployed and elderly after 1st protest. More concessions after the 2nd one, now they will bribe the rest into signing up. Can you imagine if we didn’t get out and march?! Then 18 months to a year from now, price increases. Couple that to rising energy bills, it’s gonna get ugly. Then on foreseen economic disasters Yada Yada, they sell it to private company.
I would like a government statement on the Sun and air situation. They have already taxed the earth surrounding our homes and our water. Should we get some sun and air while we can before it gets taxed to reduce consumption, improve the quality, or to provide a quality resource for future generations?
All true Capitaine, except for one fact, this government will be gone in 18 months, destroyed by their own incompetence, and good riddance to them!
I put a Jihad on Irish water
This is the funniest drama I’ve seen play out since “Deception”. Makes it almost worth the charge, almost……
Give them back their bonus’ and watch their work improve!!! What a ‘shower’ of muppets! They should drink the ‘water’ they want me to pay for!
F**kin knobs
“I don’t expect that to be an issue that will continue to happen”. How about a more definite “This will never happen again”?
Is the bucket in that photograph Irish, Dan?
You’d better be careful it is otherwise Hugh McConnell will be doing a hard-hitting piece of investigative journalism on you.
It is an offence against the state to waste water or use consume water and not pay..haven’t you heard?
I have just been in contact with the photography ( Constantinos Z ) and he has confirmed for me that the bucket in the picture above is definitely not Irish. He would not divulge the nationality of the bucket out of respect for the buckets anonymity.
No form sent back and no pps given. This is why
Gemma Hussey .. on prime time.. what a snob
Have a listen to Pat Rabbite spouting lies on Prime Time. ..
DPC should be investigating it, useless wonkers
Fuppin baxtards.
And with councils telling pubs with apartments etc to not sign up and pay the rates to them this is a joke of a system.
Clowns couldn’t run a TAP
I’m getting tired of this now….maybe we should be nicer to the government, you see they won’t back down because it would be an admission of their absolute buffoonery, cods wallop and ignorance of what everybody wants them to do. Like a kid really.
So let’s treat them like kids. We’ll swap roles and we become the adults and we’ll make a deal. You give us back the taxes you are currently taking for our water charges ( VAT, motor tax et al) and we will make a contribution to your water fund. But as responsible adults, we cannot give you everything you want or you will just grow up to be a spoilt brat. But if you don’t use the new money responsibly, we will cut it completely in about 16 months time.
Landloads!
Businesses make mistakes like that all the time, they’re just better at doing the necessary PR to cover them up.
It’s no use. Nobody is thinking rationally in this thread as per usual. They were lost to their rage once ‘irish water’ was mentioned…
What’s an inhuman error? A donkey error maybe?
IW even sent a letter to a man, who had been dead 11yrs!
Kenny told more untrouts in the Dáil today about privatising our water minister for finance and minister for envoi recent can sell it full stop
Ok business as usual in irish water but isn’t there another issue here? Is Irish water allowed to give that landlord the info he requested about his tenants registering or not? And secondly does he have the power to demand they register with irish water in the first place?
Your “exclusive” will most likely result in a low paid worker at an outsourced centre losing their job tomorrow, did you think about that?
Are you a Ganger supplying low paid workers to call centres, Alan? Shame on you, you dirty birdie
The board of Irish water must be sacked along with all levels of management. The new team must then start from scratch. The level of ineptitude is mind blowing.
Hopefully irish water management and staff are getting plenty lime on the bottom of their mugs during their morning coffee, and plenty fluoride , Mercury and other chemical nasties – who knows it might be a topic of conversation for them in the canteen as to what a crock of shit of a utility people are being bullied into paying. Then again maybe the bitter taste in their mouths is keeping their poison mentality going .
have your say