budget 2012

Budget 2012

Minister for Finance Michael NoonanMinister for Public Spending & Reform Brendan Howlin

Public Sector Social Welfare Education Transport Health Environment Enterprise Justice

The Main Hits- Day 1

€400m savings in Public Sector pay bill by 2013

10pc cut in overtime

5pc cut in allowances

Reduced allowances and secretarial support for former Taoisigh

Limited recruitment across public sector

Economic impact?? Merit goods!

Public Sector

Education

€250 increase in college registration ( €2,250). This will create an additional €18.5m per annum in revenue.

Primary school transport increase to €100

Back-to-school clothing allowance for under-4 abolished. Reduced by €50 for primary and post-primary ( yield €30m)

School Capitation down 2pc

€30m investment for training initiatives for unemployed

950 teaching jobs to go (700 post-primary)

Education

Health

Threshold of drugs payment scheme to increase to €132

Charges for private beds in public hospitals to rise ( health insurance increase!!!)

Free GP for long-term illness 2pc cut in disability, mental health and

children services Reduction in use of agency staff Prescription charge to remain (50c)

Health

Weekly social welfare payments unchanged

Child benefit for first and second child unchanged- reduced from €167 to €148 for third child and from €177 to €160 for fourth plus

Rent supplement change- pay €30 per week up from €24

Fuel allowance paid for 26 weeks not 32 weeks

Disability payments down by 50pc for young people.

Part time job seekers down 20pc ( saves € 5.9m)

Economic impact??

Social Welfare

EnvironmentHousehold charge €100 from January 1st

Waived for those on mortgage assistance and living in unfinished housing

estates

31 Garda stations to close

Garda budget cut by €79m

Justice

Taxation time- day 2

Income tax rates and bands unchanged at 20% and 41%

Higher rate of VAT increased to 23% USC- exemption raised to €10,036 Carbon tax from €15 per tonne to €20 per

tonne - petrol up 1.4c -diesel up 1.6c -€17.32 on oil -€14.46 on gas -no change on solid fuels

Taxation

Cigarettes up 25c per pack of 20

Alcohol unchanged (legislation planned on low cost alcohol)

Motor Tax changes from January 1st:

Band A up €56 to €160 Band B up €69 to €225 Band C up €28 to €330

Taxation

Capital Acquisitions tax up from 25pc to 30pc

Capital gains tax up 25pc to 30 pc

DIRT tax up 27pc to 30pc (discourage leakage of savings)

Corporation tax unchanged at 12.5pc

Taxation

Mortgage Relief

30% relief buyers 2004-2008

25% first time buyers 2012

15% for non first time buyers

Mortgage Relief

Gambling legislation to be introduced for online betting

Research and development expenses of €100,000 can be used as a tax credit

Other

Will this budget cause growth?

Forecast GDP 1.3 % growth for 2012

Will this budget increase employment

?Currently over 14% unemployment