A list of the main points outlined in Mr Cowen's speech.
Childcare
- New early childcare supplement of €1,000 per year for each child under 6 to be paid quarterly. Payments begin in mid-2006
- Monthly allowance for first and second child raised to €150 per month
- Monthly allowance for third and subsequent children increased to €185 per month
- Unpaid maternity leave extended by 4 weeks in 2006 and another 4 weeks in 2007. Total unpaid maternity leave to rise to 14 weeks by 2007
- Paid maternity leave extended by 4 weeks to 22 weeks in 2006 and to 26 weeks in 2007
- Childminders exempt from PAYE, PRSI and levies on first €10,000 of income
- Capital grants to private childcare providers doubled to €100,000
- Community childcare providers to get support of up to €1 million or €20,000 per place
- €790 million investment in childcare from 2006 to 2010
- Extra 50,000 childcare places to be provided
- Maternity benefit raised from 75% to 80% on reckonable income
Social welfare
- Old age pension raised by €14 to €193.30 per week
- Non-contributory pension raised by €16 to maximum of €182
- An extra €150 million in care and support services for the elderly
- Weekly fuel scheme raised from €9 to €14 per week
- Social Welfare payments will rise by €17 per week
- Lowest full personal Social welfare payment will be €165.80
- First €100 of non-contributory pensioners' income exempt from means testing
- Social Welfare increases will cost €1,120 billion
- Social Finance Initiative for community projects to be supported by banks
Taxation
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- Personal tax credit raised by €50 and €100 for married couple
- Employee tax credit raised by €220
- Standard tax band raised by €2,600 to €31,000
- Minimum wage earners will be lifted out of tax net
- VAT registration threshold raised to €27,500 for service firms, €55,000 for manufacturers
- VRT relief extended to flexible fuel cars
- Carbon fund to be introduced with €20 million to purchase carbon credits
- Betting duty reduced to 1%. Bookies to absorb duty
- Heating oil excise rate reduced
- Excise rates on old reliables unchanged
- Stud fee tax reliefs will end in 2008
- Limit of tax relief on lump sum payments into individual pension funds to be capped at €1.25 million or €5 million if total fund exceeds €5 million
- Lower income earners to be encouraged to invest in pensions
- Artists' relief capped at €250,000
- Amount of income claimed in tax reliefs for high earners to be halved
- Nursing home tax reliefs retained
- Property investment tax reliefs on urban renewal schemes will expire in December 2006
- Tax relief on rent payments raised by 10%
- Health Levy raised from €400 to €440
- Respite care grant increased to €1,200
- Exemption limit on over-65s raised by €500 single, €1,000 married
- Reforms of Budget process to be introduced in 2006
- Bank levy not renewed
Education
- €900 million in capital spending for third level institutions by 2010
- €300 million for Strategic Innovation Fund for higher education
- Additional funding in return for reform of third level institutions to reduce duplication of courses and to ensure greater value for money
Government spending
- €50.6 billion in voted current spending, total expenditure to grow 11%
- Public service pay €16.4 billion in 2006, up 7%
- Capital spending 5% of GNP
- General Government deficit of 0.6%
- GDP projected at 4.6% in 2006, GNP 4.8%, inflation 2.7%
- Freeze on indirect tax rates
- Infrastructure and education a priority
- Aims of Budget: Improve equality and opportunity, support lower income earners
- Cowen: Prosperity cannot be taken for granted
- Capital spending of €43.5 billion in 2006-2010 of which €5.5bn will be PPP