Budget 2018 To Be Revealed This Afternoon

Paschal Donohoe the finance minister was in budget negotiations with his Fianna Fáil counterparts yesterday

Paschal Donohoe the finance minister was in budget negotiations with his Fianna Fáil counterparts yesterday

In Education, €10bn is being spent on services, a move which is anticipated to bring the teacher-pupil ratio down to 26:1.

Addressing the homelessness crisis, the minister announced an allocation of €1.83bn for housing in 2018.

He will also siphon off 750 million euros from the state's sovereign wealth fund, the Ireland Strategic Investment Fund, to start a new body that will offer debt finance to builders and be staffed by executives from the state's "bad bank", NAMA.

Also on climate change, the minister will spend €36m on expanding energy efficiency programmes in the public, commercial and residential sectors and 17 million euro on a planned Renewable Heat Incentive and incentivising uptake of electric vehicles.

There will be marginal tweaks to the USC rates, with the 2.5% rate of USC being cut to 2%, worth in the region of €33 a year, and the 5% rate to 4.75%, worth around €47 to someone earning the average salary.

This tax will be brought in at a rate of 30c a litre on drinks with over eight grammes of sugar per 100ml.

-Additional 800 Gardai to be recruited next year.

The cost of social protection will be over 20 billion and in the last week of March 2018 all weekly welfare rates will increase by 5 euro per week.

-Additional 1,000 SNA positions by September 2018.

A Christmas Bonus payment of 85% will again be paid to all social welfare recipients in 2017.

-Entry level for higher rate of Income Tax increased to €34,550.

The Children's Minister says 20,000 more children will be given free childcare.

This will be worth an extra €150 each year if you earn that figure.

Minimum wage workers will see a new 2 per cent rate kick in at €19,372, meaning they won't have to pay the upper rates.

There will be no savings in PRSI or income tax.

Mr Donohoe said: "This Budget achieves sustainable and affordable tax reform, delivers improvements in services, and ensures increased investment in our national infrastructure".

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