Finance Minister Delivers The Largest Budget In The History Of The State

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Finance Minister Paschal Donohoe

Finance Minister Paschal Donohoe has unveiled a 17.7-billion-euro budget package in the Dail.

There will be a 3.4-billion-euro recovery fund aimed at increasing employment. The fund will be targeted to boost domestic demand.

As part of the stimulus package the VAT rate for hospitality will be reduced to 9% from November 1st.

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The Temporary Wage Subsidy Scheme or a similar scheme will remain in place to the end of 2021.

Minister Paschal Donohoe said the budget is framed with both Covid and Brexit in mind.

It’s a budget focused on the big picture.

-Fuel is going to cost you more – the carbon tax has gone up 7.50 a tonne and the same will happen every year out to 2029.
-Changes to motor tax and VRT will also increase bills for those with high polluting cars.
-The most popular pack of cigarettes will now cost 14 euro after a 50c increase.
-But alcohol has been left untouched.
-For Tourism and Hospitality, the VAT rate has been cut to 9 per cent.
-There will also be 50 million euro for the live entertainment industry in a fund.
-Money has been put aside to support businesses that have had to close because of COVID.
-On housing the help to buy scheme has been extended.
-There’s also 500m to build 9,500 new social housing units in 2021.
-A four-billion-euro fund for the Department of Health will deliver more than 1,100 acute beds, an increase in ICU capacity and 1,250 community beds.

 

It’s a broad budget with lots in it as the government seeks to borrow and spend its way out of this recession.