The Irish Government will release its budget for the fiscal year of 2021. Despite the global economic downturn, the nation’s
The Irish Government will release its budget for the fiscal year of 2021.
Despite the global economic downturn, the nation’s fiscal deficit is expected to be less severe than originally thought. An uptick in tax revenues, particularly in income, corporate and value added taxes, will leave it at less than the estimated $35 billion. The unemployment situation is less rosy—it is projected to remain at 16%.
The governing coalition between centre-right Fianna Fail and centre-left Fine Gael has sought to manage expectations, with Finance Minister Paschal Donohoe assuring the public that the upcoming budget will not be a budget that “will put money in your pocket; it is a budget that will keep money in your pocket.” Despite policy differences, consultations among the three parties have proceeded smoothly, with Fianna Fail reneging on its pledge to cut the capital gains tax.
Expect the budget to include more funding for health (particularly for contact tracing schemes and PPE) and housing, which remains a charged issue for youth voters who find themselves priced out of the market. “Frozen” sectors of the economy like food services and hospitality are also likely to receive greater state aid.
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