The Irish government is considering a multi-billion euro package of one-off budget measures aimed at supporting families and businesses. With tax receipts reaching a record high of €47.8bn, the proposed package may include once-off welfare payments, energy rebates, and financial assistance for businesses.
Options under consideration include energy credits, lump sum payments for fuel allowance recipients, and a double child welfare payment. Additionally, the government is exploring the possibility of a cost-of-living package to address the rising cost of living and energy bills.
These measures aim to provide support while considering inflation concerns and ongoing funding needs.
Record Tax Revenue
Tax revenue in Ireland has increased significantly, with tax receipts reaching €47.8bn by the end of July, representing a 10% growth compared to the previous year. This growth can be attributed to various factors, including a nearly 9% rise in income tax receipts and a substantial €1.9bn increase in corporation tax receipts.
Income tax receipts have experienced a significant increase of almost 9% in the first seven months of the year. Additionally, VAT receipts have reached €13.2bn by the end of July, showing a notable increase of €1.4bn.
Overall, tax revenue has exceeded last year’s figures by more than €4bn. These record tax receipts provide the government with the opportunity to consider a multi-billion euro package of one-off measures to support families and businesses.
Cost-of-Living Package
The government is considering a cost-of-living package to address the expenses associated with living and assist with energy bills. This package aims to assist families in coping with the rising cost of living and provide financial support for businesses.
Options being explored include targeted energy payments and financial supports for businesses. Last year’s cost-of-living package was agreed upon when inflation was running at around 8% and energy prices were high. However, it is unlikely that this year’s package will be of the same magnitude due to the government’s awareness of inflation and the need to fund ongoing measures in the future.
The specific details of the package, including the extent of targeted energy payments and support for businesses, will be determined in September based on Exchequer returns and the inflation rate in October.
Energy Credits and Lump Sum Payments
Exploring potential financial relief options, the government is considering the implementation of energy credits and lump sum payments as part of their efforts to address the cost of living and provide additional support. These measures aim to alleviate the burden of energy bills and offer financial assistance to households.
The government is contemplating the introduction of targeted energy payments, which would provide direct financial support for energy expenses. Additionally, they are exploring the possibility of energy credits, similar to the €200 payments made to households in the past. These credits would be aimed at offsetting the costs of energy consumption.
Furthermore, the government is considering providing lump sum payments for fuel allowance recipients, which would offer additional financial support.
The specific details of these measures will be determined in September, taking into account the needs and challenges faced by families and businesses.
Double Child Welfare Payment and Supports for Businesses
The potential implementation of a double child welfare payment or an additional €100 for each child, aimed at providing supplementary financial support for families, is under consideration as part of the government’s ongoing efforts to address the cost of living.
This one-off measure is part of a multi-billion euro package of budget measures that aims to boost families and businesses.
The government is exploring various options to support families, including the possibility of doubling the child welfare payment or repeating the extra €100 payment made in June. These measures are intended to alleviate the financial burden on families and provide additional support during challenging times.
Additionally, the government is also considering one-off supports for businesses through a reworked version of the TBESS scheme. This scheme aims to provide financial assistance to businesses and help stimulate economic growth.
Specific details regarding these measures will be determined in September based on Exchequer returns and the inflation rate in October.
