It's that time of year again – Budget day is upon us.
Minister for Finance Paschal Donohoe announced the 2019 Budget today in the Dail amidst rumours of new tax cuts and spending increases.
He opened with, ''we will protect the most vulnerable in our society.''
So here are the main points of information from the Budget about how it will affect you.
Expenditure on capital next year will be €7.3million with the Minister saying, “I am allocating an additional €1.4 billion for schools, universities, public transport, and other important infrastructure projects in 2019, bringing total expenditure on capital next year to €7.3 billion.”
Its good news for workers as the Universal Social Charge is set to be lowered by 0.25 percent (meaning roughly an extra fiver a week) and threshold which people hit the higher tax band, 40 percent rate of income tax, will rise by €750 from €34,550.
As well as that, the threshold at which people hit the lower 2 percent rate of USC, (incomes between 12,000 and 19,000) will be widened by €500, taking into account the 25 cent increase in the minimum wage. Home carers tax credit is increasing by €300 and the earned income tax credit for the self-employed is up €200.
Putting the finishing touches to #Budget19 speech. Cabinet meeting at 10am for final discussion and speech to the #Dail at 1pm. Balancing our books for the first time in a decade will better position us in the years ahead for a more secure and resilient future pic.twitter.com/ObBkVVUAd8
— Paschal Donohoe (@Paschald) October 9, 2018
“I am announcing a further increase of €1.05 billion in Health funding for 2019. This brings the health budget to €17 billion. This is the highest level of Health investment in the history of the State.”
Patients under the Drugs Payments Scheme will be happy to hear that the monthly cut-off charge on medicine is reduced to €130 from the current level of €134.
Prescription drug charges reduction from €2 to €1.50 for medical card holders.
Minister @PaschalD I am allocating an additional €1.4 billion for schools, universities, public transport and other important infrastructure projects in 2019, bringing total expenditure on capital next year to €7.3 billion. #Budget19
— MerrionStreet.ie (@merrionstreet) October 9, 2018
The housing crisis has also been looked at, with €2.3billion has been allocated to the housing programme in 2019, with an extra €150 million will be allocated for the housing assistance payment. There will be €1.25billion for 10,000 new social homes in 2019.
He said, ''more new homes will be provided this year than any year in the past decade''
Thresholds for affordable housing applicants set at €50,000 for single applicants and €75,000 for dual applicants.
Cigarettes have gone up an extra 50 cent while booze prices remain the same.