MAIN POINTS OF BUDGET
With the benefit of hindsight it is clear more should have been done to curtail the housing market boom, says Lenihan
Ireland has faced adversity in the past and prevailed he tells Dáil
Lenihan says that we became over-reliant on the construction industry.
The Government now expects the economy to shrink by 8% this year, with consumer prices falling by 4%.
Six steps required to stabilise economy, says Lenihan
The minister announces there will be a 10% cut in political expenses, while long-term payments to TDs will be abolished.
Politicians' pay to be reviewed and benchmarked against similarly sized countries
Minister says €3.25bn adjustment required this year
Levies on personal incomes to increase
Government sets borrowing target of 10.75 per cent
Cost of servicing debt has risen to 11 per cent of revenues
Capital spending is to be cut by €1.3bn in 2010 and €2.4bn in 2011
Government expects tax revenues of €34bn this year
Government may introduce form of property tax and carbon tax
Public service staff aged over 50 to be allowed retire early from certain posts
Welfare rates will not be reduced in this Budget. However, there will be no increases in social welfare for the next couple of years, and rates may be reviewed later.
The Christmas welfare bonus will not be paid this year, while those under 20 will have their dole payments halved.
Child benefit will be means tested from next year
Early child care education supplement to be halved this year to €500, abolished in 2010
Capital allocation of €7.3bn for this year
Tax increases to generate extra €1.8bn this year
Government talking to industry about capital funding programme
Current and capital spending by total of €.8bn this year
Corporation tax rate of 12.5% to remain unchanged
Mortgage interest reliefs to be curbed ahead of abolition
Capital gains tax to increase to 25 per cent, thresholds to fall
New levy on life insurance policies to be introduced. The levy on non-life insurance premiums rise from 2% to 3%.
Income levy rates to double, entry rates to be lowered. The income levy thresholds have been lowered, with the 2% rate kicking in at €15,000, 4% at €75,000 and 6% at €175,000.
The ceiling for employee PRSI will rise from €52,000 to €75,000.
Deposit interest tax to be increased. DIRT will go up from 23% to 25%.
Tax changes to apply from May 1st
Central Bank to be headed by Commission
A national asset management agency to be set up under the NTMA
This agency will purchase distressed assets valued at approximately €80 to €90 billion
Agency will pay less than €90bn for the assets, any shortfall to be made by a levy
Excise duty on diesel to rise by 5 cent
Excise duty on cigarettes to rise 25 per cent
Lenihan said no scope to raise excise duty on petrol or alcohol
The Government to redirect National Development Plan to support jobs
Andrew Large to advise Government on setting up new financial regulatory structure
Back-to-work scheme to be amended
Bank plan will result in significant increase in debt levels
Tax reliefs for purchase of intellectual property to be introduced
Stamp duty trade in scheme to be introduced
Lenihan says economic success fostered a feeling of invincibility and led to rejection of Lisbon
An Enterprise Stabilisation Fund will be set up to help protect jobs in troubled businesses.