2. Acknowledgements Terms of Reference
The Group would like to acknowledge the excellenct assistance
and support of all collegeues , Mr. Henry Joyce and all family
members.
Theteamwouldalsoliketothankvariousdepartmentstafffortheir
help and knowledge throughout the duration of the project.
The objectives of the Group are to:
1)Review the scope for reducing or discounting expenditure
programmes with a view to eliminating the budget deficit by 2016.
2) To analyses and make recommedations to the Minister for
Finance.
The Group will report to the Minister for Finance.
5. Introduction
It is with pleasure that we present our proposal for public
finances corrections as per parameters set out in our meeting.
The recovery of Irelands Economic situation is fundamentally
important and this must be a priority for the forthcoming budget.
Summary
It is our recommendation that the Minister for Finance makes
amendments of €3.1 Billion for the budget of 2014.
In the economy there is a wide array of areas where savings can
exist. We believe that the savings from this budget will generate a
further boost for the Irish economy and help us stand on our own
from 1st January 2014.
Due to the fact that for the first time since 2009 unemployment is
expected to go below 400,000, this will improve economic
conditions. It will lessen the public expenditure bill, increase tax
revenue. These are just two areas where the scope for savings
exists. For this reason we actually need to only cut €2.5 Billion but
it is the recommendation of this team that we continue to meet
the “Troika” demands and find the savings of €3.1 Billion.
In the process of drawing up this submission we believe that we
have been successful in keeping the balance fair as to not cause
undue suffering to the most vulnerable in today’s society.
6. Executive Summary
The objective of this budget was to achieve a saving of €3.1
billion.
This was attained by reductions in expenditure and
introduction of tax increases and new taxes.
The scope for savings exists in reduction of public sector
expenditure and other areas without necessitating cuts to
front line services, education or mental health.
Careful consideration was given to realise equity,
efficiency and progressivity in the following areas:
INCOME TAX
Income tax rates for the lower earners was left untouched,
while a new band at 70% was introduced for individuals
earning over €150,000. This ensures those who earn more
contribute more.
7. CORPORATE TAX
Corporate tax has been increased to 15%. We retain one of the
lowest rates in Europe and so remain an attractive location for
Foreign Investors. SMEs will be compensated with the
introduction of tax relief.
CAPITAL GAINS AND CAPITAL ACQUISITIONS TAX
Both C.G.T. and C.A.T. have been increased to 35% in line with the
recommendations of incremental increase as set out in last year’s
budget
OIL EXPLORATION
Finally, steps have been taken to tackle the miscalculations of
previous Governments and bring the revenue from our oil
resource into line with the rest of Europe. Henceforth, oil
companies who are successful in their explorations will pay tax at
a marginal rate of 70%.
SOCIAL WELFARE
Social welfare received minimal cuts
amounting to a saving of €118 (less than 4%
of overall savings)
addition to increased revenue, health care
will also benefactor
8. GOVERNMENT SPENDING
Government spending was targeted as an area of gross
overspending. All public service departments will be obliged to
reduce overheads, with particular emphasis on administration to
the tune of 1%, the Seanad and Dail will be receive a reformation
and privileges such as the Government jet be curtailed.
All departments will be penalised for wasteful / duplicate
spending.
EXCISE DUTIES
Excise duty on wine, spirits and cigarettes will be increased.
ENVIRONMENTAL
Carbon tax will be increased by €5 / tonne and an oil levy of €5 /
barrel added.
SOFT DRINKS
