Public Expenditure Minister Pascal Donahoe has extended a reassuring hand to those grappling with surging mortgage repayments triggered by the European Central Bank’s relentless interest rate hikes aimed at curbing inflation. The situation has hit hard not only for the Irish but also the Malayali community residing in Ireland.
Minister Donahoe empathizes with the plight of ordinary citizens and has pledged to collaborate with Finance Minister Michael McGrath to address the issue in the forthcoming 2024 Budget. However, concrete details and clarity on the proposed remedy are anticipated only in October or on the day of the budget presentation.
This financial challenge comes as a double blow for the common man, who is already grappling with the soaring cost of living.
In addition to mortgage relief, Donahoe’s cabinet is set to deliberate changes to the Universal Social Charge (USC), a tax introduced post the 2010 financial crisis. Currently, only those earning €13,000 or less are exempt from the USC tax, and alterations to this tax structure aim to ease the burden on those with lower incomes.
It’s worth noting that Donahoe’s political party, Fine Gael, had previously pledged to abolish the USC tax altogether, adding a layer of anticipation to the upcoming budget discussions.