In a highly anticipated announcement, Ministers Michael McGrath and Paschal Donohoe have revealed Ireland’s budget for 2024, amounting to a significant €14 billion. Several noteworthy changes include an increase in the rent tax credit, reduced childcare costs, and expanded discounted public transport for 25-year-olds.
Welfare recipients will see an increase of €12 in weekly social welfare and pension payments, with additional one-off payments for various allowances. On the tax front, the lower tax band rises to €42,000, while Pay-related Social Insurance (PRSI) increases by 0.1%. Universal Social Charge (USC) drops to 4%, and there are adjustments to VAT rates.
A substantial cost-of-living package of €2.7 billion has been introduced, with the minimum wage increasing to €12.70. Carbon tax and cigarette prices are set to rise. Child Benefit expands, childcare costs decrease, and various tax credits increase.
Funds will be allocated for healthcare, housing, education, climate initiatives, and support for farmers. Notably, a “Future for Ireland” fund aims to secure the state’s financial future.
The budget extends support to various sectors, addressing both immediate needs and long-term sustainability.