This document outlines the Irish budget for 2012 announced by Minister for Finance Michael Noonan and Minister for Public Spending & Reform Brendan Howlin. It includes cuts to public sector pay and allowances, increases in tuition fees and reductions in education and social welfare spending. It also increases taxes such as VAT, carbon tax, cigarette and alcohol taxes, and capital gains tax to reduce the deficit. The goal is to cut €3.5 billion in spending while stimulating growth to reduce unemployment which is currently over 14%.

1. Minister for Finance Michael Noonan
Minister for Public Spending & Reform Brendan Howlin

2.  Public Sector
 Social Welfare
 Education
 Transport
 Health
 Environment
 Enterprise
 Justice

3.  €400m savings in Public Sector pay bill by 2013
 10pc cut in overtime
 5pc cut in allowances
 Reduced allowances and secretarial support for
former Taoisigh
 Limited recruitment across public sector
Economic impact?? Merit goods!

5.  €250 increase in college registration ( €2,250). This will
create an additional €18.5m per annum in revenue.
 Primary school transport increase to €100
 Back-to-school clothing allowance for under-4 abolished.
Reduced by €50 for primary and post-primary ( yield
€30m)
 School Capitation down 2pc
 €30m investment for training initiatives for unemployed
 950 teaching jobs to go (700 post-primary)

7.  Threshold of drugs payment scheme to
increase to €132
 Charges for private beds in public hospitals
to rise ( health insurance increase!!!)
 Free GP for long-term illness
 2pc cut in disability, mental health and
children services
 Reduction in use of agency staff
 Prescription charge to remain (50c)

8.  Weekly social welfare payments unchanged
 Child benefit for first and second child unchanged- reduced
from €167 to €148 for third child and from €177 to €160 for
fourth plus
 Rent supplement change- pay €30 per week up from €24
 Fuel allowance paid for 26 weeks not 32 weeks
 Disability payments down by 50pc for young people.
 Part time job seekers down 20pc ( saves € 5.9m)
 Economic impact??

9. Household charge €100 from January 1st
Waived for those on mortgage assistance and living in unfinished
housing estates

10.  31 Garda stations to close
 Garda budget cut by €79m

12.  Income tax rates and bands unchanged at 20%
and 41%
 Higher rate of VAT increased to 23%
 USC- exemption raised to €10,036
 Carbon tax from €15 per tonne to €20 per tonne
 - petrol up 1.4c
 -diesel up 1.6c
 -€17.32 on oil
 -€14.46 on gas
 -no change on solid fuels

13.  Cigarettes up 25c per pack of 20
 Alcohol unchanged (legislation planned on
low cost alcohol)
 Motor Tax changes from January 1st:
 Band A up €56 to €160
 Band B up €69 to €225
 Band C up €28 to €330

14.  Capital Acquisitions tax up from 25pc to
30pc
 Capital gains tax up 25pc to 30 pc
 DIRT tax up 27pc to 30pc (discourage
leakage of savings)
 Corporation tax unchanged at 12.5pc

16.  30% relief buyers 2004-2008
 25% first time buyers 2012
 15% for non first time buyers

17.  Gambling legislation to be introduced for
online betting
 Research and development expenses of
€100,000 can be used as a tax credit

18. Forecast GDP 1.3 % growth for
2012

19. Currently over 14%
unemployment