The Budget

Started by Silky, April 03, 2009, 08:43:33 AM

Previous topic - Next topic

Silky

IBEC are calling for a cut in social welfare and everybody else is having there spake. What will happen and what has to happen to help the state recover so?

They cant cut the dole or pensions. Can they? If the put up VAT more shoppers head north. Income tax will have to go up for everybody IMO.

A property tax will take far too long to set up so its a longer term thing.

Are we back to the days of a Minister for Hardship?

http://www.youtube.com/watch?v=wzu1ToAxdFk

Gnevin

Quote from: Silky on April 03, 2009, 08:43:33 AM
IBEC are calling for a cut in social welfare and everybody else is having there spake. What will happen and what has to happen to help the state recover so?

They cant cut the dole or pensions. Can they? If the put up VAT more shoppers head north. Income tax will have to go up for everybody IMO.

A property tax will take far too long to set up so its a longer term thing.

Are we back to the days of a Minister for Hardship?

http://www.youtube.com/watch?v=wzu1ToAxdFk
Welfare is very high as it stands , and is one of the main government expenditures. With deflation prices are falling so it could be done but it won't  they don't have the bottle.
Anyway, long story short... is a phrase whose origins are complicated and rambling.

GaillimhIarthair

Doesn't this breed confidence........... :-\


Friday, April 03, 2009

Lenihan admits finances are not viable
by Paul O'Brien, Political Correspondent

FINANCE Minister Brian Lenihan last night admitted the country's fiscal position was "unsustainable" after figures showed a €3.7 billion shortfall in the public finances for the first quarter of the year.

The Department of Finance figures showed the Exchequer deficit has increased tenfold since the corresponding period last year, when it stood at just €354 million.

Fine Gael accused the Government of leading the country "on a road to ruin" because it was spending far more than it was earning.

The quarterly Exchequer returns showed tax revenue for the first three months of the year was down €2.6bn, or 23%, on 2008.

Government spending, by contrast, was running at €680m, or 6%, above expenditure levels for the same period last year.

The rising levels of unemployment, resulting in more social welfare payments, were a major factor in the increased spend.

The department also released projections of what the Government stands to earn and spend this year before the effects of next Tuesday's emergency budget are taken into account.

The Government is currently in line to spend e65.4bn this year, a combination of e57.5bn to fund day-to-day costs and e7.9bn for infrastructure projects.

However, it stands to take in just e34bn in tax and a few billion more from other revenue streams such as PRSI and the health levy.

The upshot is that the Government would have to borrow about €23bn this year if no further action was taken to address the crisis.

This is €5bn more than it believed it would have to borrow in January.

Mr Lenihan said the Government had already taken action to address the "unsustainable position" and would be taking further steps to "improve the immediate prospects for the public finances" in the emergency budget to be unveiled next Tuesday.

Lecale2

When is it? I know a few men in Newry worried about any VAT reduction. How likely is it?

lynchbhoy

if they actually looked at a lower level into more detail of payments and who is getting them , the gov might see that they can save multi millions by cutting out wasteful expenditure.
Middlemen and over bureacracy in dept of health  and health service, getting more beds, treatment, doctors and nurses instead of middle management who are over staffed rather than operating a lean efficient model.
Same would hold for other departments I would imagine.
Social welfare, too many people getting paid money who no longer live in the state, plus their dependants getting welfare. Clearly this is beyond their entitlement , but there are plenty of ex self employed people that need welfare that dont currently qualify that should get something - this would mean the money gained in taking back what shouldnt be paid out is less because of paying some money towards ex-self emloyed.

Business sector people shoul dbe enrolled to help create a financial model - eg ben dunne, he knows how to make cash - he also suggests cutting vat and so on as a high percentage of nothing is a lot less of a small percentate of lots of sales/revenue.

the problem is that the gov do not have business acumen.
I think the successful businessmen and women of Ireland should be tapped for their ideas on how to increase revenue by generating sales in the economy.
Obv stopping the exodus north is a priority.

Ensuring that no additional employer prsi etc occurs as this makes being a viable operating business and employer impossible if increased. Reduction is better long term and would generate good will and consumer/business confidence - and confidence will breed more confidence and restore business avtivity to the marketplace.

imo
..........

Gnevin

Well any rumours ?

VAT meant to be going down. Levy's up.

Will this save what's left of the economy?
Anyway, long story short... is a phrase whose origins are complicated and rambling.

bingobus

Have heard that Tax Free Lump sum payments from pension funds could now be taxed.

Boolerhead Mel

Reading in the Irisn news today that dole for a single man is €204  per week when it works out at about €54 in the North-no wonder there is so much dole tourism going on!!

Rossie11

Expecting petrol to go up 20c per litre.


Bogball XV

Call me a pessimist if you want, but i think the few cosmetic changes made today will have fcuk all difference in the long run.  Yeah, levies will double, VAT might be reduced, a few public sector contract staff will be fcuked out and a few infrastructural projects will be shelved, the biggest decision announced today will be the bad bank (which as explained elsewhere will leave us about 40Bn down).
In the budget next november they'll cut welfare (as it will be crippling the state by that time), widen the tax net, up the tax rates, reduce pension relief (more good long term thinking), offer redundancies to public and civil servants, tax child benefit etc etc, but it'll hardly matter as we'll be begging the EU to buy our treasury bonds by that stage (apparently they've been very good and have been buying them up so far).  But, if we want the EU to bail us out, we'll have to play by their rules, do you think they pay out 200 quid a week in dole?  Are their public sector workers paid anywhere near what ours are?  Does their head of state and politicians earn what ours do?  I think not!!
They'll bail us out, but we'll have to give up a lot in return - it won't be a bad thing for us in the long run, moving towards Berlin and away from Boston will improve the quality of life of all of us in the long term.

Gaoth Dobhair Abu

Quote from: Boolerhead Mel on April 07, 2009, 11:59:10 AM
Reading in the Irisn news today that dole for a single man is €204  per week when it works out at about €54 in the North-no wonder there is so much dole tourism going on!!


Always said that the welfare system in the "south" was always far too high, it's not worth your average working class man "working"! as he/she can earn the same if not more on benefits!

If the dole isn't going to be cut then at least get the one's on it out cleaning up their local areas, collecting rubbish, painting, cleaning canals/rivers etc...
Tbc....

Donagh

Eddie Hobbs is Twittering about a bank bail out:

http://twitter.com/EddieHobbs

armaghniac

QuoteExpecting petrol to go up 20c per litre.

This would be unwise, making it more expensive in the North would not raise that much revenue as 10-20% of sales would disappear with tremendous dislocation. 

Petrol will be up a few cents, but diesel will get a bigger rap perhaps 15c, as it is more expensive in the North.

If at first you don't succeed, then goto Plan B

magpie seanie

On of th biggest problems/worries is that the Dept of Finance's budgeting/forecasting appears to be done by 5 year old children.

Income levy will be increased but the govt need to be careful. The €204 a week (plus possibly rent etc) for sitting on your hole will start looking attractive to people working hard and getting taxed proportionately too much. We don't want that. The richer people in society (earning 6 figure sums) need to be hit hard, simply because they can afford to be. Second homes should be taxed. FF qill not do this though. They will hit petrol because they have leeway (i.e. it will still be cheaper in the ROI than over the border) and reduce VAT to pretend they have some sort of stimulus plan.  ::)

All in all I just hope they get the figures right or November will be absolute carnage, if we survive 'til then. With us having to go on bended knee I don't see our coveted 12.5% CT rate lasting much longer.

mannix

I had a house rented to a family, cheap school system,free healthcare, rent allowance, fuel allowance,childrens allowance,neither parent worked or wanted to work,sc**bag tells me its the best country in the world because he was going to scotland to watch a soccer club in action after lying in bed till midday.
No country can afford to carry as many passengers as Ireland is trying to.The dole is england is about 50 pound a week, now I know anyone can fall on hard times but there is too many people getting money for nothing, not even trying. And when they finally left they left 1100 euro of a gas bill for other bord gais customers to pick up and change the name for the next time.
My blood boils.