Last week’s rushed liquidation of IBRC and the reshuffling of Ireland’s ECB debts should help reduce the need for cuts in spending and tax increases in the 2014 Budget. Of course – nothing can be promised until the ECB and the IMF agree to it.
Speaking about the debt deal in Cork – Tanaiste Eamon Gilmore said this week “This is the people’s money and the people will benefit from what was negotiated. Our estimate is this will ease the budgetary situation by about €1 billion. Clearly what’s going to be in December’s Budget is a long way off but there will be a tangible benefit for people.”
Earlier in the week – Joan Burton , Minister for Social Protection , commenting on the debt deal said “We need to invest those proceeds immediately to get our people and our economy working again, beginning with this year’s Budget because there is no time to lose.”
Budget 2014 won’t be announced until December 2013 – but it is expected to contain more of what we have seen in recent Budgets – : tax increases , cuts to welfare spending and maybe even the introduction of third level student fees if the IMF suggestions are implemented. ( See: https://www.moneyguideireland.com/university-tuition-fees-on-imf-wishlist.html ) Before the debt deal – there were going to be €3.1 billion of adjustments required.