For all economics students who have made their fiscal predicitions, the day has arrived! We dont expect this politically driven budget to have any major surprises.
If you can overlook general election motivation, the aim of this budget is to increase the purchasing power ( real income) of middle income consumers. The big question is will it work to increase GDP?
- USC cuts
- Corporation tax incentives (mistake!!)
- Free GP care to be extended
- Increase in child allowance
- Paternal benefit increased
- Free pre-school year extended
- Excise duties increase- cigarettes ( relatively inelastic good)
- View Irish Times link on ‘What we know about this Budget so far’https://www.google.ie/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCAQqQIwAGoVChMIz5P3_Ku_yAIVQlUUCh0cEwPV&url=http%3A%2F%2Fwww.irishtimes.com%2Fnews%2Fpolitics%2Fbudget-2016-main-points-of-what-we-know-so-far-1.2389753&usg=AFQjCNFAzFwdMdbajZoRnA5WbUjn0hKzNg&sig2=pc6S_L-yfoGzfX1FFc49Yg&bvm=bv.104819420,d.bGQ