Budget 2022
Budget 2022 was earmarked as one that would help the country on its post-pandemic recovery.
Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath outlined the Government's respective actions on tax income as well as increased spending this afternoon.
It's a €4.7billion package in total - including €1billion in increased spending and €500m in tax cuts.
Here are some of the key new measures that were announced as part of the document:
Income:
- A €4bn COVID contingency fund is being created
- Employment Wage Subsidy Scheme extended in graduated rate until 30th April 2022
- Employees will be able to claim back 30% of vouched expenses for heat, electricity and broadband for working from home
- The minimum wage is rising by 30c to €10.50 an hour
- Lower tax band of €35,300 will rise by €1500
- Personal tax credit, employee tax credit and earned income credit increasing by €50
- The ceiling for the second band of USC is rising to €21,295
- The Help to Buy scheme will be retained for 2022 at current rates and reviewed next year.
- Carbon tax will rise by €7.50 per tonne
- This will lead to the cost of a full tank of petrol going up by €1.28 and diesel by €1.50
- 50c increase on the cost of a packet of cigarettes - bringing total cost to €15.
- No changes to excise duty on alcohol.
Spending:
- A €5 weekly increase for all social welfare recipients
- The back to school allowance will go up by €10.
- New funding stream for 4,700 childcare providers from September 2022
- 78m extra for National Childcare Scheme - linked to no increases in costs for parents
- Extension of free GP care to children aged 6 and 7
- Pilot scheme to provide a basic income for artists
- Live events sector to get €25m in support
- Young adults aged 19 - 23 are to get a 50% reduction in public transport
- €1.4bn to develop public transport including money for BusConnects, MetroLink and DART+
- Women's health package of €31m, including free contraception for women aged 17-25 from next August
- More funding for sexual assault treatment units
- €37m for expansion of mental health services
- 8,000 new jobs across health system
- An extra 800 Gardai will be hired and 400 civilian staff
- Hiring 980 teachers and 1,165 new Special Needs Assistants.
- 3,320 additional CAO places as part of a €68m investment in higher education.
- SUSI grants to increase by €200.
- Income thresholds for families applying for SUSI grants to increase by €1000.
- €200 student contribution fee for Post-Leaving Cert courses is to be abolished.
- More funding for apprenticeships particularly in construction
- Package on domestic and sexual violence including extension of legal aid for victims and funding awareness campaigns
Main image: Sasko Lazarov / RollingNews.ie
