Budget 2018 – What we Know So Far

The Budget for 2018 is due to be announced on Tuesday October 10th 2017.
The government estimate , in Feb 2017 , of the net “fiscal space” available for Budget 2018 was  €1.2 billion. But , whilst Budget 2018 is expected to allow for at least a  €1.2 billion “adjustment ” , the real room for manoeuvre could be as little as €500 million because of the carry over effects of some measures from Budget 2017.
But – in a speech on June 28th , Taoiseach Leo Varadkar pointed out that in the run up to each Budget, a lot of emphasis is  placed on the ‘extra’ resources that are available, the so-called fiscal space.

He said it is ” important to bear in mind that this represents only a small increment of the total resources available. What we should focus on is the totality of expenditure and taxation.

Varadkar said thatthere is a  need to review existing spending programmes and if just  1% or 2% of the  €53 billion state expenditure could be re-allocated we would have another billion.  He called this the  hidden ‘fiscal space’.

He also said that Budget 2018 would “find some space to increase the take home pay of two million people who work really hard in this country, who get up every day, go to work, pay the taxes that make everything else possible”

What exactly is meant by “fiscal space”?
It can be defined as “room in a government´s budget that allows it to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy.

Budget 2018 will now be overseen by new Finance Minister Paschal Donohoe , who was appointed in June.

The Department of Finance will produce a summer economic statement in June , giving an  updated estimate of the room for manoeuvre in the budget. The recent proposed public sector pay increases could also mean less money available for Budget 2018

What can we expect in Budget 2018 ?

It’s a few months away yet – but here are a few things we might expect to see in Budget 2018

Student Loans – this has been on the back burner for a couple of years. Maybe 2018 is the year it begins?

USC reductions – with possible balancing income tax increases for higher earners.   There could be a kind of  merger of the USC and pay-related social insurance (PRSI)  – which might mean more people paying PRSI but less paying USC.

Medical Cards :  Health Minister Simon Harris has hinted at a widening of the eligibility for medical cards – or at least GP visit cards. This might involve a raising of the income thresholds.

Further income tax reductions for the self employed.

A small cut to DIRT  – probably 1%

Sugar Tax details are due to be announced for 2018

School Transport – possible changes to charges.

Welfare and Pensions – probably some more small increases.

Land tax on vacant sites could be introduced to encourage house building.

VAT – the IMF have suggested increasing VAT on items that are currently lower rated for VAT. Retailers are asking for a cut of 3% to the standard VAT rate. Maybe we will get both?

Property Tax – this could be increased ; it has remained the same since it’s introduction. (The IMF have suggested it could be increased)

Updated July 7th

We will keep this page updated with any Budget 2018 related news as we hear about it.

4 thoughts on “Budget 2018 – What we Know So Far

  1. (Comment edited to remover personal deails)

    We badly need a rent to buy scheme or affordable housing scheme and I work with the Homelessness Voluntary and you need to do both not just 1 that will bring argument on both side of the coin.

    Also I think work experience like what I do should get increase in the money if you are doing this type of thing and maybe get people into work experience placement that most important that they like and capable of doing and help them into a job from the work experience if possible.

    Welfare should be risen because of the cost of things

    My name is **** and my partner is **** and we are in a difficult situation which is if Paul parents dies in the morning even do he is in full – time employment he will be left without a home due to rent increase and also we did rent together and we would now like to get a mortgage to live together permanently.

    The second problem is that he is been refused in the banks because I am in the National Learning Network in a course called career path old name fast – track where I am sitting exams and doing work experience in Retail to help me get a job and put my life together and I am doing well but I have till April 2018 to complete it and I have a job coach who help me with my decision and support me.

    The reason why I am in Roslyn is due to Epilepsy and I have had no seizure in 6 years but I did take turns in the passed so I was let go from jobs and there is still a sigma against epileptic in Ireland.

    I am tired telling the bank because all they ever say she not working both people have to be working I find this a form of discrimination because it should not matter if I am on welfare and if he is in full time – employment we are never trusted.

    Kinds Regards
    ____________
    Orla

  2. they should bring back the moability allowance transport grants for older people and people with disability they are lost with out it i have a disability i need to update my car every now again too if i was working with the goverment i bring them back for good from stephen in galway

  3. Children who leave primary school and are under age of 16 are not allowed or entitle to any dental treatment on medical card. Why? I am from Drogheda and rang louth dental hse section in dundalk and i was told my 14 year okd wasnt eligable for any treatment. Why do we have to wait until damage is irreparable? Surely its a human right. She needs fillings and a root canal treatment and if its not carried out she will have to get them out. Its a disgrace

  4. I think the bin weight charges are probably the way it should be done in a perfect world but in the real world it is going to lead to fly dumping.
    The bin charges should be incorporated into the household charge.
    That way everyone would have a bin and everyone would be contributing towards the costs of waste disposal. Weight the bins and offer people a discount based on that.
    The collection of the bins should then be put up for tender for different localities, stopping two or more bin trucks visiting the same village/areas – thus cutting down on pollution from heavy vehicles.

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