The Budget for 2014 is due to be announced on October 15th 2013 – and it is expected to reveal adjustments totalling €3.1 billion . The busget adjustmenst are expected to be made up of spending cuts of €2 billion and tax increases of €1.1 billion. This is following on from the “adjustments” of about €3.5 Billion in the 2013 Budget and €3.8 Billion in 2012.
After some financial “juggling with the infamous prommissory notes earlier in 2013 – there was some talk of possible easing back on the austerity in Budget 2014
But – the IMF seem to think that we should continue with the cuts as planned. In a recent report from the IMF after their latest review of Ireland’s progress – it was suggested that any reassessment of financial targets should come after Budget 2014 .
Instead of reducing the impact of Budget 2014 with savings from the promissory note transaction – the IMF are strongly suggesting that those savings may be needed to “provide an opportunity to help build buffers against shocks. ”
So it looks like we can still expect to see Budget 2014 bringing yet more news of austerity with €3.1 billion worth of tax rises and spending cuts . We will keep you up to date with any more news and rumours about what will be in Budget 2014 . We will find out all the gory details as soon October 15th 2013 – because Budget day is being bought forward to fit in with EU financial timetables.
Also in the IMF 10th review of Ireland’s performance under the bailout program – it was mentioned that Ireland’s Fiscal policy remains on track to achieve the 2013 targets but that “economic recovery is not well established and risks to debt sustainability remain. ”
The IMF review also stressed that major reforms in key spending areas are still needed to deliver future savings ( We assume Health, Welfare and Education) as well as the “effective implementation of reforms to employment services to try and address long-term unemployment.”