Home > Economy > Irish Government unveils high-spending 2021 budget

Irish Government unveils high-spending 2021 budget

Written by Business World, on 13th Oct 2020. Posted in Economy

article headline

The Irish government on Tuesday unveiled its annual budget for 2021, announcing significant borrowing to support those most impacted by some of Europe's toughest COVID-19 restrictions, and to prepare for the threat of a no-trade-deal Brexit.

Here are some of the key measures:

COVID-19

* Establishment of a 3.4 billion euro ($4 billion) recovery fund to focus on infrastructure development, reskilling and retraining, and supporting investment and jobs.

* Value-added tax for the hospitality sector cut to 9% from 13.5% until end of 2021

* Grants of up to 5,000 euros per week for firms unable to open due to specific COVID-19 restrictions. Grants based on 2019 turnover will be available for the duration of regional restrictions

* Extra 4 billion euros in spending for health services, including provision of personal protective equipment and additional hospital beds

* 2.1 billion euros to be held in contingency for spending required in response to COVID-19

* Additional sector supports, including: 50 million euros for live entertainment; Arts Council funding increased by 50 million euros; 36 million euros in funding for Sport Ireland

HOUSING

* 5.2 billion euros provided to the housing department, up 773 million euros compared to 2020 and a record level of funding

* 500 million euros will be directed towards capital expenditure to facilitate construction of 9,500 new social housing units in 2021

* Government extends subsidy for first-time home buyers to the end of 2021

OTHER

* Carbon tax to rise by 7.50 euros from 26 euros to 33.50 euros per tonne next year; 100 million euros of carbon tax revenues to be invested in energy efficiency

* 1 billion euro investment in public transport, with a focus on climate transition

* Total infrastructure investment by the state of over 10 billion euros for the first time, with investment focused on climate, healthcare, public housing, transport and education.

* New multi-annual capital funding for cross-border projects with Northern Ireland of 500 million euros over 5 years. (Reuters)

Source: www.businessworld.ie

More articles from Economy

image Description

Ireland to target deficit below 6% with big budget package

Read more
image Description

ESRI upgrades economic forecasts for Ireland

Read more
image Description

Irish SMEs heading into period of “extreme” stress

Read more
image Description

Further supports required for the long winter warns Goodbody

Read more
image Description

Sterling falls to two-month low ahead of new UK restrictions

Read more