The Minister for Public Expenditure and Reform, Michael McGrath TD will address business leaders at a pre-budget business breakfast meeting in the Sheraton Hotel Athlone on Thursday 7th July at 7.30am. Hosted by Athlone Chamber of Commerce and RBK Chartered Accountants, the timing of the event coincides with the publication of the Summer Economic Statement.
On Monday 4th July, the Minister for Public Expenditure and Reform Michael McGrath along with the Finance Minister Paschal Donohue, announced the introduction of record levels of Government spending on tax cuts and welfare increases to the sum of €6.7bn to help counteract the increasing cost of living and inflation that has impacted the country over the past several months.
The Budget has been brought forward to the 27th September. This budget will include tax cuts in excess of €1bn which will allow the Government significant leeway to increase the entry point for the top tax rate and enhanced tax credits.
The Minister will also have to use this money to continue the reduction of excise duties and VAT on fuel into the New Year.
An additional €2.7bn will go on new measures such as welfare hikes, public sector pay increases and investment services such as child welfare and education.
The remaining €3bn will be used to pay for capital commitments under the National Development Plan and existing public sector pay deals along with addressing the demographic changes which have increased the level of Government spending to keep services in place. It is expected that this increased spending will be paid for using tax surpluses raised during the year, mostly from high levels of corporation tax.
It is expected that the budget spending will increase by 6.5% when compared to last year’s spending, which is over the Government’s 5% threshold. In addition, there will also be another €4.5bn in non-core spending allocated to the Covid-19 recovery process as well as assisting people fleeing from Ukraine.
Brian Feeney, Partner at RBK Chartered Accountants, commented ahead of the event, stating; “We look forward to hearing from The Minister for Public Expenditure and Reform, Michael McGrath TD on preparations for the upcoming Budget 2023 and for the opportunity to input into the budgeting process from a business perspective.”