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Live: Budget 2019

The Finance Minister has taken to his feet in the Dáil to announce budget 2019.

Paschal Donohoe is announcing a range of tax cuts and spending increases.

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Introducing the budget, Finance Minister Paschal Donohue said his goal would be a balanced budget – the first since 2007 – with a “broad and stable tax base” with “efficient and stable spending”

With a predicted 4.2% economic growth next year, Minister Donohue said the Budget will be broadly based. While, he said the working assumption is of a Brexit deal in the coming weeks, the possibility of a No Deal or Hard Brexit has influenced some decisions.

Further Detail

  • Budget to include a Human Capital Initiative worth 300 million.
  • Future growth loan scheme for SMEs, Agriculture and goods.
  • 110 million of Brexit measures in Departments.
  • Rainy day fund to be set up with 1.5bn from Strategic Investment Fund and 500 million from exchequer
  • 800 million fiscal space, plus revenue raising measures of 700 million.
  • Total extra spend in this budget of 1.5 billion.

Education

Minister says he is “allocating an additional €1.4 billion for schools, universities, public transport and other important infrastructure projects in 2019, bringing total expenditure on capital next year to €7.3 billion”.

Housing

  • Total 2.3 billion euro allocated for a housing programme.
  • 1.25 billion to deliver 10,000 new social homes in 2019.
  • An extra 121 million for Housing Assistance Payment.
  • 60 million increase in capital funding to fund emergency accommodation.
  • 30 million extra for homelessness services, bringing 2019 total to 146 million on those services.
  • 100 million affordable housing fund to help local authorities deliver affordable housing – increasing to 310 million over three years.
  • Eligible to people on 50,000 euro a year for single person or 75,000 euro for couple
  • Will knock up to 50,000 off price of a house.
  • 100 percent mortgage interest relief on any loan used to pay for a rental property from next year.
  • Any increase in Local Property Tax will be moderate and affordable.

Health

  • 1.2 billion extra spending next year.
  • 25 euro increase in weekly income threshold for GP visit cards.
  • Prescription charges to drop 50c to €1.50 for medical card holders over 70.

Mental Health

  • An extra 84 billion euro for mental health services next year.
  • 1 billion total budget.

NTPF

National Treatment Purchase Fund funding will be 75 million, an increase of 20 million.

Disability

Increase in funding to disability services of 150 million to 2 billion.

Capital Health

Capital spending on health to increase by 174 million euro to 670 million.

Cigarettes and Tobacco

  • Pack of 20 cigarettes to increase in price by 50 cent.
  • Minimum excise on tobacco products to rise so that all cigarettes sold below 11 euro will have same excise as more expensive ones.

Social Welfare

  • 5 euro a week increase in all social welfare payments from next March.
  • Christmas bonus to social welfare recipients to be restored to 100 per cent.
  • Two extra weeks’ parental leave to all parents of a child under one.
  • Increase in qualified child payments.
  • €2.20 per week for under 12s and €5.20 per week for over 12s.
  • Increase of 25 euro in back to school clothing and footware allowances.

Education

  • 1,300 additional posts in schools in 2019.
  • 5 per cent increase in standard capitation rate per pupil.
  • 950 special needs assistants to be recruited in 2019 as part of 1.8 billion fund for children with special needs.
  • National Training Fund levy to increase by 0.1 per cent in 2019 and 2020.
  • Extra 196 million for capital spending in education to create 18,000 new permanent school places, upgrade ICT and invest 150 million in higher education.

Business

  • Department of Business to get 950 million euro next year, an increase of 9 per cent
  • New Future Growth Loan Scheme for SMEs, Agriculture and Food sector – Will be worth up to 300 million.
  • Enhancements to the KEEP programme to retain skilled workers.
  • Share options may now be granted up to 100 per cent of salary and overall value of options will have higher ceiling of 300,000 euro.
  • Corporation tax to remain unchanged at 12.5 per cent.
  • New exit tax regime of 12.5 per cent on any unrealised gains arising from when a company moves assets offshore so they leave Irish taxation.

Transport And Roads

  • 286 million euro towards new infrastructure like:

-N4 Collooney to Castlebaldwin and the Dunkettle Interchange

-Completion of runway overlay project at Knock Airport

-Design, planning and implementation of cycling and walking projects around the country

  • Extra 40 million euro for pavement repair and rehabilitation works on regional and local roads.

Tourism

  • Tourism VAT rate to rise to 13.5 per cent from January 2019 – will raise 466 million euro.
  • 35 million for tourism investment including 4.5 million for regional initiatives like Wild Atlantic Way and Hidden Heartlands. Includes 10 million for development of greenways.

Corporate Gains

Tax free threshold on Capital Acquisitions Tax to rise 10,000 to 320,000 when parents transfer to children

Film

Extending film corporation tax credit to 2024

Betting

Tax on betting to rise from 1 to 2 per cent

VAT

9 per cent VAT rate to be retained for newspapers, and electronic publications to have rate cut from 23 per cent to 9 per cent.

Diesel

1 per cent surcharge for diesel vehicles across all VRT bands

Farming

60 million for Brexit related supports

Rural

53 million in capital next year for rural regeneration fund

Garda

  • Budget of An Garda Siochana to increase by 60 million
  • 800 new Gardaí recruited

Justice

60 million for justice sector for Asylum seeker accommodation, to Widen Magdalene scheme, reform of Department of Justice and Courts.

Overseas Development

Overseas aid to increase by almost 110 million euro.

Sport

  • 126 million for sport.
  • 41 million for sports projects like clubs and organisations, retention of 9 per cent VAT rate for sporting facilities.

Culture

36 million extra for Department of Culture to include money for restoration works and supports for the arts.

Tusla

Tusla to get an extra 30 million in funding.

Childcare

90 million extra for childcare supports to change bands for affordable childcare scheme.

Income

  • Entry level for higher rate of income tax increasing by 750 euro to 35,300 euro.
  • Third rate of USC to be cut from 4.75 to 4.5 per cent.
  • Minimum wage to be increased to 9.80 per hour.
  • Threshold for higher rate of employer PRSI increased from 376 to 386.
  • Home carer tax credit to increase by 300 to 1,500.
  • Earned Income Credit for self employed to increase by 200 euro to 1,350.

 

 

 

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