Irish government to unveil 4.7bn euro Budget package

By Cate McCurry

The Irish Government is to unveil its Budget for 2022, in a package that will amount to 4.7 billion euro.

Taoiseach Micheal Martin said it will “consolidate” Ireland’s economic recovery as it emerges from the Covid-19 pandemic.

Following last-minute discussions among some departments and officials, the details of the Budget were rubber-stamped and will be set out on Tuesday afternoon.

Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath will deliver their speeches in the Dail chamber at 1pm.

It marks a step on the road to recovery from coronavirus after last year’s Budget was made in the Convention Centre.

The Irish Government is to unveil its Budget for 2022, in a package that will amount to 4.7 billion euro.https://t.co/zdDDMpKGOn

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Mr Martin, speaking on Tuesday morning ahead of a Cabinet meeting, said: “I think the backdrop to this Budget is Ireland emerging from the Covid pandemic and the economic recovery under way.

“We have to consolidate that and we’ll do that by making sure that there’s no cliff edge in respect of supports for jobs.”

Mr Martin said the Budget measures will provide support for children and families, while also ensuring that people are protected from rising fuel and energy costs.

Another indication of the Government’s plan to emerge from the Covid crisis is the winding down of emergency spending that propped up the country throughout the pandemic.

The Government received a boost last week when it was confirmed there has been a seven billion euro reduction in the deficit.

The projected public finance deficit in the summer economic statement was 20 billion euro, but that has fallen dramatically to 13 billion euro, with the economy bouncing back from the pandemic faster than expected.

However, Mr McGrath said this would not see the Government “splurge” in the Budget.

The focus will be on addressing rising cost-of-living pressures, as well as housing, childcare and climate action.

Social welfare recipients are in line for an increase of at least five euro across the board.

Ministers are also expected to announce a rise in the fuel allowance for a number of qualifying households.

People working from home are also set to receive a boost after Tanaiste Leo Varadkar indicated that the Budget will include tax incentives.

On Tuesday, Mr Varadkar told reporters that the Government needs to look towards a return to “normal budgeting” ahead of any rise in interest rates on borrowing.

He said the package of measures set to be announced by Mr Donohoe are “not insignificant”.

The priorities, he said, include helping families with the cost of living, as well as supporting businesses and investing in public services.

The Government is expected to announce that people will be able to claim part of their household bills on the days they work from home.

Despite calls from some to increase the weekly pension by 10 euro, it is more likely to rise by five euro. It will be the first pension increase since 2019.

As part of the Government’s plan to improve childcare services, fees are also expected to be frozen for parents and guardians.

Meanwhile, an increase in the qualified child payment will see more families included in the National Childcare Scheme (NCS).

Mr McGrath described the Budget as “progressive”, saying it will improve the public’s living standards as the country emerges from the pandemic.

(Irish premier Micheal Martin)