To develop our
infrastructure
To improve public
services and promote equity
To encourage enterprise
and investment, and
To do so in a
way that sustains fiscal policy
The Budget:
Safeguards the
vulnerable in society
Prioritises our
needs and
Continues to invest
for the future
| Summary of Economic Outlook
Economic
growth (GDP) at 3.9% next year
Employment
up by about 1.5% annually to 2004
Inflation
falling next year to 4.2% and to 2¼% by 2004
Exchequer
Surplus and General Government Surplus in 2002
Increase
in net current spending and net capital spending of 10½% in
2002
|
Personal Taxation Measures
| Business Taxation Measures
Top rate of Employers PRSI cut from 12% to 10¾% from 1
March 2002
The standard rate of corporation tax on trading profits will
fall to 16% from 1 January 2002
Over the next five years Corporation Tax payments will move
to a current-year basis
Improved loss relief provisions for companies on their trading
and non-trading income
Business Expansion Scheme and Seed Capital Scheme reliefs
increased and extended to end- 2003
Tax measures to help farmers with restocking after Foot and
Mouth Disease
Indirect Taxation
Standard rate of VAT up by 1% point to 21% from 1 March 2002
Excise duty on petrol and diesel up by 5p per litre (inclusive
of VAT) from midnight 5 December
Excise duty on cigarettes up by 10p per packet of
20 (inclusive of VAT) from midnight 5 December
Excise duty on cider increased to the same level as that
for beer
Betting tax cut from 5% to 2% from 1 May 2002
|
Housing Related and Other Tax Measures
Interest relief on rented residential property restored and stamp
duty rates for investors reduced
Deadlines for Urban and Rural Renewal, Student Housing, Park and
Ride, and Multi-storey Car Park Schemes extended by two years
Tax relief for donations to Sports Organisations for capital projects
| Children
Child Benefit monthly payments to increase by £25
(1st and 2nd children) to £92.62 per
month and £30 (3rd and subsequent children) to
£116 from April 2002
From next year, a family with 4 children will be receiving
over £417 per month in Child Benefit
Back to School Clothing and Footwear Allowance
for children aged 12 and over increased to over £94
from June 2002
|
Capital Expenditure
€550 million for capital spending including:
€146 million for local authority and social housing
€100 million for road improvements
€44 million for public transport development
€55 million for primary and secondary school buildings
€45 million for Health and Children
| Current Expenditure
€1.68 billion gross current spending including:
€970 million for Social Welfare
€385 million for Health and Children
Social Welfare Measures
Maximum weekly personal rates for old age and related
pensions increased by at least £10 per week from January
2002
Over 66 rate of Widow(er)'s (Contributory) Pension increased
by £12 per week
Maximum weekly personal rate for recipients under 66 years
increased by at least £8 per week
Short term Unemployment Assistance and Supplementary Welfare
Allowance increased by over £9.50 a week from January
2002
Qualified Adult Allowance payments increased by
between £8 - £10 per week from January 2002
Family Income Support income thresholds increased
Widowed Parent Grant almost doubled to just under
£1,970 from 5 December
National Fuel Scheme allowance increased by £2.09
to over £7 per week from January 2002
Further increase in the income disregards for means test
for Carers Allowance from April 2002
Annual respite care payment increased to £500
Number of free units available under the Free Electricity
Allowance increased by 20%
Qualification criteria for the Free Telephone Allowance relaxed
Extension of the Free Travel Companion Pass to invalidity
pensioners from May 2002
|
