Budget 2014 – €3.1 Billion of Cuts and Taxes

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.”