2012 Budget – What can we Expect ?

Budget 2012 Ireland

The 2012 Budget – which will be announced in early December 2011 – is still a few months away – but what can we expect ?

Many of the draft Budget 2012 plans were agreed with the IMF by the last government as part of the Memorandum of Understanding .

The overall aim of Budget 2012 will be to further reduce the general government deficit in line with the National Recovery Plan  with  consolidation measures amounting to at least €3.6bn.

Budget 2012 Measures are expected to include :

Increased Revenue of about  1.5 Billion Euro: –

– A lowering of personal income tax bands and credits.

– A reduction in private pension tax reliefs.

– A reduction in general tax expenditures.

Free Business Accounts

– A property tax.

– A reform of capital gains tax and acquisitions tax.

– An increase in the carbon tax.

Spending reductions in the region of  2.1 Billion Euro : –

– Social expenditure reductions.

– Reduction of public service numbers and public service pension adjustments.

The details will make interesting – if not depressing reading when they are revealed.