Key takeaways from Tuesday’s announcement
Post-Covid economic recovery and the cost of living were two of the main themes in Tuesday’s Budget 2022 announcement which saw the delivery of a €4.7 billion package.
Other top priorities outlined by Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath in the Dáil included the housing crisis and climate change. Below are some of the key points:
A package of €558million will go towards increasing pensions and jobseekers’ allowance by €5. The fuel allowance will also be bumped up by €5 with and extra €3 added to the living alone payment.
Tax and employment
An income tax package of €520 million was announced with standard rate bands to increase by €1,500.
The minimum wage will go up 30c to €10.50 with a number of tax discounts to be implemented for people working from home.
The housing budget will see total funding of €6 billion go to the sector with €2.5 billion of that sum put aside for social housing.
There was good news for first-time homebuyers with the announcement that the Help to Buy scheme will be extended for a year and fully reviewed.
The hospitality sector will keep its nine per cent VAT rate until next August with the Employment Investment Incentive tax relief scheme also to be extended.
The state’s innovation equity fund will receive €30 million, a sum that will be matched by European Investment Bank funding.
Carbon tax will rise by €7.50 per tonne of C02 produced with €202 million dedicated to providing home energy upgrades for 22,000 households. A further €174 million will go towards energy efficiency measures.
A contingency fund of €4 billion has been created to offer stability should a resurgence of Covid-19 take place unexpectedly.
In relation to current Covid-19 supports, Minister Donohoe said there would be no “cliff edge” to the Employment Wage Subsidy Scheme.
He confirmed that the scheme would remain in place in a graduated form until 30 April, six months after the lifting of most public health restrictions and two months after the PUP ceases.
Petrol + cigarettes
An increase of 2.5 cent will be applied to every one litre of diesel, while petrol will go up 2.1 cent per litre. The price of a pack of 20 cigarettes will go up by 50c.
For a full breakdown and guide to Budget 2022, visit gov.ie.
Speaking in the Dáil on Tuesday, Minister Donoghue said the both Covid-19 and Brexit had demonstrated the need to always prepare for the worst while striving for the best.
“Many lives were lost, many livelihoods were ruined. The Covid-19 pandemic was an unprecedented experience for all of us but it also brought out the very best in Irish society,” added the Minister for Finance.