Irish budget, 2011
Encyclopedia
The 2011 Irish Budget refers to the delivery of a government budget
by the Government of Ireland on 7 December 2010. It was also the fourth overall budget to be delivered by the ruling Fianna Fáil
party's Brian Lenihan
as the country's Minister for Finance
. The budget for 2011 was occurred in the context of a major recession, which followed the 2008–2009 Irish financial crisis
. The budget was described as the most draconian budget in the history of the State, with €6bn worth of savings.
Government budget
A government budget is a legal document that is often passed by the legislature, and approved by the chief executive-or president. For example, only certain types of revenue may be imposed and collected...
by the Government of Ireland on 7 December 2010. It was also the fourth overall budget to be delivered by the ruling Fianna Fáil
Fianna Fáil
Fianna Fáil – The Republican Party , more commonly known as Fianna Fáil is a centrist political party in the Republic of Ireland, founded on 23 March 1926. Fianna Fáil's name is traditionally translated into English as Soldiers of Destiny, although a more accurate rendition would be Warriors of Fál...
party's Brian Lenihan
Brian Lenihan, Jnr
Brian Joseph Lenihan was an Irish Fianna Fáil politician and barrister who served in the government of Ireland as Minister for Justice, Equality and Law Reform from 2007 to 2008 and as Minister for Finance from 2008 to 2011...
as the country's Minister for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...
. The budget for 2011 was occurred in the context of a major recession, which followed the 2008–2009 Irish financial crisis
2008–2009 Irish financial crisis
The 2008–2011 Irish financial crisis, which had stemmed from the financial crisis of 2008, is a major political and economic crisis in Ireland that is partly responsible for the country falling into recession for the first time since the 1980s...
. The budget was described as the most draconian budget in the history of the State, with €6bn worth of savings.
Main Points
This is a list of the main points contained in the 2011 Budget.- No reduction in state pension.
- €10 reduction in Child Benefit rates.
- €8 cut for social welfare, jobseekers payments.
- 4c on petrol, 2c on diesel from midnight.
- Revised air travel tax of €3 from March 2011.
- €40 payment for fuel allowance recipients.
- New minimum wage not in tax net.
- Public service pay will not be cut
- Public sector salary capped at €250k
- Public service pensions over €12k cut 4%
- Taoiseach salary cut by €14k; ministers by €10k
- Next President's salary to be capped at €250,000
- Employee PRSI/health levy pension relief gone
- Income/health levies to be replaced by single universal social charge. Rates on the charge will be 0% below €4,004 a year, 2% up to €10,036, 4% from €10,036 to €16,016 and 7% above this level
- Pension contributions subject to PRSI and Universial Social Charge
- Employee PRSI contribution ceiling removed
- Increase in the PRSI rate for the self-employed, higher earning public servants and office holders
- 1% tax on residential transactions up to €1m; 2% over €1m
- All stamp duty exemptions abolished
- Car scrappage extended for six months
- No change to Ireland's corporation rate
- Value of tax bands and credits to be reduced by 10%
- DIRT increased by 2%
- Online betting will be subject to the same betting duty as in bookie shops
- Carer's Allowance for those under 66 to be cut by €8 to €212 a week
- Disability Allowance being cut by €8 to €186 a week
- Business Expansion Scheme to be revamped
- 15,000 activation places for unemployed
- Third-level student charges are to rise by €500 to €2000
- Student grants are to be cut by 4%
- New passport fees for over 65s