Thanks be to God we have finally reached the 7th December 2010 and now we are in receipt of what has been described in some quarters as the harshest budget ever delivered in the Western World. Almost all of it was flagged, but there are some sneaky bits….
OK, so there are €6bn of cuts in the pipe for 2011 with another €9bn to go up to 2014 and these numbers depend on both no slippage in the Government’s growth projections, which, given the right circumstances are achievable and rigid adherence to the fiscal controls, which traditionally have been the Government’s weakness. So if things go according to projections, we face an additional €3bn per annum in cuts over the next three years.
This is a progressive budget with significant reforms to the tax system, which will prove in time to be very beneficial to the State. This is an extremely clever budget from a political point of view, where the Govt has dodged the elephant in the room, namely the cost of the Public Service. Within 9 months, if the unions have not delivered on the Croke Park Agreement (as they probably won’t !), the new Govt will be instructed by the IMF to slash and burn the public service – this will become the defining moment of the IMF project.
This budget hits hard at all sections of society as indeed it must. Importantly, there is nothing in the budget which is too damaging for business, which is a good thing as we need business for growth generation. There are promising signs of growth, particularly with exports and lets face it as a small outward looking economy, with improving productivity and excellent creativity, we are excellently poised as a nation to capitalise on the next great boom !
Well done to the two Brians on having the courage to stick to their guns and although they may be out of office shortly – I say may, because independent thinkers, who are fed up of media negativity, are starting to believe that the public may form an alternative view !
To understand some of the budget 2011 implications, please check out our 2011 Irish Tax Calculator at http://tinyurl.com/2avluqf
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found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
Ger
You’re tax calculator is great but I’d like to have a quick summary of all the tax breaks which have changed for 2011.
IN particular I’m interested in what the change is in tax relief on pensions.
Any guidance there?
Neil