Irish Government Budget 2013

#budget13 presents the IRISH BUDGET 2013 legalpanda.ie legalpanda.ie TAX INCREASES SPENDING CUTS Spending Cuts €1.25 BILLION €2.25 BILLION Taxes 64% Michael Noonan, Minister for Finance, has announced plans to increase taxes by €1.25 billion in 2013. This additional revenue will from drivers, property owners, pensioners, third level college students, smokers and drinkers among others. Brendan Howlin, Minister for Public 36% Expenditure and Reform, has cut €2.25 billion from Government expenditure for 2013. This expenditure will be reduced in areas such as social welfare, Garda overtime, child benefit, dole payments, and public sector reforms. come 4100 €3.5 BILLION 100URO 1.2.3.4.5t austerity budget in a row How much money is that? €10,000 1 stack of 100 Euro notes The next time you see a 40 ft container truck on the M50 motorway, think of that truck filled with 100 Euro bills! €100,000,000 1 pallet of 100 Euro notes ADD THE STACKS OF EURO'S TO AN INDUSTRIAL SIZED PALLET ADD 35 PALLETS STACKED OF 100 EURO'S INTO A 40 FT CONTAINER €3,500,000,000 1 truck of 100 Euro notes e7.0% /tonne CARBON TAX UNIVERSAL SOCIAL CHARGE USC to rise to 7% on over 70's with income over €60,000. Carbon tax extended to solid fuels. A TAXES rate of €10 per tonne will apply from 1 May 2013. See a summary of where the Government aims to bring in more revenue for 2013. 831% + 0.18% < 1 Million 0.25% > 1 Million CHARITY DONATIONS PROPERTY TAX NEW A new, simplified tax relief regime of 31 per cent which will apply to all donations. Homeowners now face a tax of 0.18% of their property up to 1 million and 0.25% thereafter coming into effect in July 2013. €36+ 100%+ MOTOR TAX & VRT FARMING TAX Up from 1st of Jan, 2013. The average family car will go up €36 in annual road tax as fuel efficient cars face Encouraging young farmers to get involved in farming a 100% stock relief for young trained farmers is introduced. higher VRT rates. Y €0.10t 2014 PENSIONS ALCOHOL AND TOBACCO PRSI Relief on contributions will only serve to subsidise pension schemes that deliver income of The price of a pint, spirit and (20) cigarettes will go up by 10 cents and a bottle of wine by € 1. Unearned income will become subject to PRSI in 2014. This means PRSI will be payable on income generated from wealth such as rental income, dividends and interest on deposits and savings. up to €60,000 / annum. + Capital Gains Tax - Threshold (10%) DIRT (3%) OTHER TAXES 10% decline in public sector staff SPENDING CUTS presented by levels since 2008 legalpanda ie See highlights below where the Government is tightening their belt in spending for 2013. € €35m SOCIAL WELFARE VENTURE CAPITAL FUND RETRO FITTING Dole payments are set to be cut from 12 months down to 9 months. A ten-year €175m VC Fund will be launched to fund new and expanding €35m will be provided as seed capital for the Energy Efficiency Fund (retrofitting). This will save €33 million in 2013. Irish companies over the medium term. "€10 +560 Jobs /month CHILD BENEFIT YOUTH DETENTION FACILITY MEDICAL CARD A €10 cut in child benefit will see a drop of over 7% in child benefit support. €17.4m will be provided to the Dept of Children and Youth Affairs for the Charges for Medical card holders rising from 50c to €1.50. Monthly cap for a family is being increased from €10 to development of a youth detention facility. €19.50. AM PENSIONER ALLOWANCES GARDA SAVINGS €60m THIRD LEVEL FEES Reductions in overtime and payroll & efficiency measures will yield Over 70's with an income of €600- €700 / Student contribution will be increased week (single) and €1,200-E1,400 / week (couple) will have their medical card replaced with a GP only card. by €250 each year for the next 3 years. over €60m. 1 Teachers maternity leave Standardisation of sick leave €9m government buildings refit OTHER CUTS GOVERNMENT DEBT TO GDP WHAT ARE THE TRENDS? The effect of the Celtic Tiger meant the Government could pay off external debt through the years of economic growth. When the recession hit and banks recapitalised in 2008 and again in the following years, this money had to be borrowed and a Ireland has not had such a bad debt to GDP level 1989 since 1989 2012 needed to be 100% result the Government debt level rose to a position where it surpassed the total GDP of the 0% country. YEARS / % GDP BUDGET - SURPLUS DEFICIT This graph demonstrates the balance of the money it collects from taxes and is compared with the money spent on capital and current expenditure. The effect of the recession and banking crisis in 2008 is clear to see. 1995 2012 10 -10 -20 -30 Progress has been made since 2008 in reducing the deficit. -40 YEARS / % GDP UNEMPLOYMENT RATE From 1983 to 1996, Ireland was consistently ranked in the top 3 EU countries for the highest rate of unemployment. Then came along the Celtic Tiger. Ireland was the wonderkid of Europe when our unemployment Ireland UK France Italy 15% 12% 9% 6% rate from 2004-2005 was the 3% lowest in the EU. A jump in unemployment rates followed and Ireland is now up to the 5th highest in unemployment rates between Portugal and Slovakia and stands at 15.1%. 2007 2008 2009 2010 2011 2012 2012 2013 2014 2015 the EU for YEARS / % UNEMPLOYED UNEMPLOYMENT RATE PROJECTIONS DATA SOURCES: SHARING legalpanda EUROSTAT WORLDBANK DEPT. OF FINANCE IF YOU LIKED THIS INFOGRAPHIC THEN SHARE THE LOVE BY POSTING IT ON SOCIAL NETWORKS OR BLOGS CONCEPT & DESIGN: AND DON'T FORGET TO REFERENCE US AT wwW.LEGALPANDA.IE LEGAL PANDA LTD LEGALPANDA.JE HTTP://LEGALPANDA.IE/BUDGET2013 www.legalpanda.ie presented by 14.8% 14.5% %6'EL