John Bruton's first budget in the government led by Dr Garret FitzGerald was defeated by 82 votes to 81 when the non-aligned deputies rejected the budget plan. It included reduced food subsidies, new taxes on clothing and footwear, with general increases in VAT, excise duties, income tax, postal and phone charges, capital taxes and social insurance contributions together with restrictions on mortgage tax relief and personal loans. The government's promise to begin the process of phasing out budget deficits over four years and introducing some responsibility into the management of the State's finances foundered in particular on the decision to subject children's clothing and footwear to an increased VAT rate of 18 per cent.