“The days of spending cuts are behind us,” declared Brendan Howlin, Minister for Public Expenditure and Reform, in his Budget statement.
He claimed that income inequality after taxes and social transfers has reduced during the crisis. “The progressivity of our income tax system means we have been one of the most effective countries in the OECD at reducing inequality,” he said.
In 2016, gross current expenditure will be over €51.4 billion. Capital expenditure will be over €3.7 billion.
Childcare
The government is extending the amount of time parents can avail of the Early Childhood Care and Education Scheme. From now on, children will be eligible for free childcare from three years of age, up until they are five and a half, or until they start primary school.
There is also €15m in new funding to facilitate the full participation of children with disabilities in the scheme.
In Association with
To support parents in low paid employment, or in training and education, 8,000 places will be made available through the Community Childcare Subvention Programme. To help with after school care, €3m is being provided to develop after school services in school buildings.
Child benefit is being raised €5 to €140 per month for every child.
Statutory paternity leave of two weeks will be legislated for to take effect from September 2016.
Education
State investment in education will amount to €8.5 billion in 2016. The allocation will provide for 2,260 new additional teaching posts, including 600 new resource teachers. This is in addition to the extra 610 special needs assistants and 190 resource teachers already announced this year.
Extra spending will aim to reduce the pupil teacher ratio at primary level from 28 to 1 to 27 to 1. At second level, it will fall from 19 to 1 to 18.7 to 1.
Social Protection
The state will spend €19.6 billion on the Department of Social Protection in 2016. The headline change to benefits is an increase in all pension payments by €3 per week in 2016, the first increase since 2009.
The government is also restoring the value of the Respite Care Grant to €1,700.
The fuel allowance is being increased by €2.50 per week to €22.50. The increase will benefit people dependant on long term social welfare payments.
The threshold for the Family Income Supplement is being raised by €5 per week for families with one child and by €10 per week for families with two or more children.
The social welfare Christmas bonus will be a top-up for 75% of the normal weekly payment – a threefold increase on last year’s payment.
First increase in the old age pension since 2009
Health
The government is €13.2 billion for the delivery of health services in 2016. This year, free GP care for the under 6s and over 70s was put in place, benefitting over 300,000 senior citizens and children.
In 2016, subject to successful negotiation with doctors representatives, it is planned to extend GP care without fees to all those under 12.
Howlin revealed that over two million people are now covered by a medical or GP visit card. This is a 25% increase on 2010.
The minister pledged that everyone who needs Fair Deal funding for a nursing home place will be approved within four weeks.
Housing
The government has increased the current allocation for social housing by a further €69m to €414m. “This funding will enable local authorities to secure accommodation for an additional 14,000 households,” Howlin claimed.
The minister is making€10m available for an affordable housing pilot scheme. This will be an ongoing annual commitment to secure a long term increase in the supply of housing for affordable rental.
Under the Capital Plan announced recently, funding is available to provide 500 modular housing units for homeless families. The government is also increasing the current allocation for emergency accommodation of homeless people, by an additional €17m.
The increase will bring Exchequer support to €70m, up 56% since 2014.
Howlin described the spending increases as “moderate, sensible and commensurate with our economic requirements. In the run-up to the 2007 election, between 2005 and 2007, public spending was ramped up by over 25%, or over €11 billion in nominal terms.
“By comparison, in 2016, public expenditure will be just 4% higher than in 2014. Over this time, tax revenues are forecast to increase by over 14%. And GDP is forecast to increase by 18%,” he stated.
