We are not very far into 2012 – and the effects of the  2012 Budget are just starting to kick in for many people.  The Household Charge , Increased VAT , Child Benefit cuts are affecting thousands of people already – but what else have the government and the IMF / EU got lined up for us in the 2013 Budget?

Some people get confused with the budget dates. The 2012 Budget was announced in December 2011. The 2013 Budget – won’t be announced until December 2012 and it will probably be aiming to get back about €3.5 billion in a combination of  cuts to spending and in increases to taxation.

About €1.25 Billion in extra taxes are expected in 2013  – with inreases  to   carbon tax , excise duty , VRT  and motor tax  along with the the introduction of a fully fledged residential property tax to replace the Household  Charge .

There will also be  a  “tightening” of various other taxes  and reliefs – with changes to  income tax bands and credits also looking likely.

Spending reductions of about €2.25 Billion will  be mainly  in the areas of  welfare entitlement reforms and some capital projects . A new single welfare  payment for working age people will be one of the major reforms.
There will always be the fallback  options of cuts to public sector wages  , public sector pensions and primary social welfare rates if required.

Privatisation of state assests is also on the cards – with the receipts being used to reduce debt.

We will keep you up to date with any Budget 2013 information during the year