Budget 2015 – which isn’t due until 14th October 2014 – was always hoped to be the last of the “Austerity” budgets. There could still be as much as €2 Billion of savings to be found in Budget 2015 – based on government forecasts made in 2013/14. This was expected to be made up of €1.3 billion cuts in spending and an increase in revenue (taxes) of €0.7 Billion
In December 2013 the European Commission were even saying that as much as €2.5 Billion of savings might be needed in Budget 2015 – and these would have to come from more tax increases and more spending cuts on top of the Property Tax , Water Charges and the USC.
There have been a few mentions of possible tax CUTS in Budget 2015 during the past few months – but was that just politicians trying to please the electorate? The best we can hope for is probably no more tax increases on earnings.
The ESRI have recently forecast better growth in the economy during 2014 than was previously expected – and some media reports have announced this as “The End of Austerity” .
The ESRI forecasts could be wrong (they sometimes are) – but whatever happens , the ESRI still recommend that any planned Budget 2015 savings are made ... they said …”However, there still remains the possibility of new shocks to the economy and so, in formulating fiscal policy, we suggest that it is best to err on the side of caution to ensure that budgetary targets are met in 2015″
So – where will the €2 Billion Euro come from this year ? Who will lose out in 2015?
Can the Irish people be squeezed one more time to pay off the bailout?