Budget 2025 is right around the corner, and there are many expectations and predictions surrounding what the Government will include in this year’s budget. One of the main focuses is on the cost-of-living package, which is estimated to be around €1.5 billion, a decrease from last year’s €2.3 billion. This package is likely to include lump-sum payments to welfare recipients and the expansion of energy credits, although the exact details are still being finalized.
While there is a strong desire from voters for immediate help with the cost of living, some economic experts argue that this may not be necessary as prices in Ireland are not expected to decrease. Despite this, the Government has already announced plans to provide a €1,000 boost to workers through a combination of tax changes and a cost-of-living package.
In terms of tax reductions, there are reports that Budget 2025 will include a significant income tax and USC reduction package, with the Taoiseach emphasizing that no person earning the average wage should pay the higher rate of income tax. Reducing the USC is said to be a central part of the income tax package.
Child poverty is also a key issue that the Government is looking to address in this year’s budget. There are concerns about the rising number of children deprived of basic essentials, such as clothes, and the Government is exploring measures to help these children in need. Additionally, there is expected to be €1.2 billion worth of investment in childcare included in the budget, with a focus on reducing childcare costs and potentially providing childcare directly through a public model.
Healthcare is another area that will see changes in Budget 2025, with the Minister for Health seeking to expand free contraception to 16-year-old girls. While there are challenges and concerns around this proposal, the Minister believes that it is a necessary step to increase access to contraceptive services for young women.
Finally, the ruling on Apple tax funds is not expected to impact the upcoming budget, as it will take time to analyze the ruling and determine how best to utilize the funds. There have been suggestions on how to spend the funds, with some advocating for investments in disadvantaged communities, while others prioritize housing, water, and infrastructure projects.
Overall, Budget 2025 is shaping up to address a range of issues, from cost-of-living supports to tax reductions, child poverty, healthcare, and the allocation of Apple tax funds. It remains to be seen how these measures will be implemented and what impact they will have on the Irish economy and society as a whole.
