CONTENTS
Changes to Personal Tax
Changes to Pensions
Changes to Business Taxation
Changes to VAT
Changes to Capital Gains Tax
Changes to Farming Taxes
Changes to Other Taxes
Economic Overview

USEFUL LINKS
Newsletter archive »
Contact us »
Print all »
Tell a colleague »
Subscribe »








Economic Overview

Today’s Budget is presented in the context of 4.7% growth in economic output for 2014, and a growth forecast of 3.9% for 2015.

Following seven austerity Budgets the Minister has taken the growth opportunity to loosen the Budget purse strings ever so slightly.

He proposes to reduce tax revenues by €420 million and to increase net voted expenditure by €630 million. However, tax buoyancy from a growing economy counter-balances these adjustments so that the Budget Deficit envisaged in 2015 is reduced by €1,445 million compared to 2014.

The 2015 Budget envisages a Current Budget Deficit of €3.73 billion and a Capital Budget Deficit of €2.75 billion.

Notwithstanding the tax reductions announced today, the improved performance of the economy is providing considerable tax growth so that overall, the Minister projects Tax Revenues of €42.3 billion in 2015, a 3.1% increase on the expected out turn of €41.04 billion for 2014.

On the expenditure side, the increase in the Capital and Current Spend of €215 million and €430 million respectively represents a 5.1% growth in the Capital Budget, and a 0.9% growth in Current Budget spending compared to 2014.

These are very modest changes and reflect the ambitions of the Government not to alter the direction of the public finances for a short term economic impetus.

The dramatic improvement in the Government’s control of public finances is reflected in the Budget Deficit as a % of GDP over each of the last five years and into next year as follows:

 

% of GDP

2010

12.2

2011

10.1

2012

8.2

2013

7.3

2014

3.7

2015 (projected)

2.7


The trend is positive, and in the next few years we can at last see the opportunity of balanced budgets, and perhaps a reduction in the overall debt burden.

Share
Newsletter Marketing Powered by Newsweaver