3. BUDGET BASICS
1.Why do we need budgets anyway?
2.Why is the government doing this?
3.What’s the future looking like?
4. WHY DO WE NEED
BUDGETS?
Budgets help us plan.
Governments have to plan to provide services like healthcare,
education, social protection, justice, agriculture
Governments ‘make’ their money from different types of taxes.
These plans are educated guesses.
11. Composition of national debt, €million at end of 2012
National Debt (€m)
Government Bonds
87,853
EU/IMF Programme Funding 55,898
Other Medium and Long-Term 773
Debt
State Savings Schemes 13,478
Short-Term Debt 3,480
Cash and other Financial Assets -23,850
13. SO WHAT?
• Government has to reduce borrowing by spending less, and
earning more.
• This means your taxes will go up, and some services will be
cut.
• EG: PRSI went up in the last budget, Child Benefit was cut.
15. COMING DOWN THE LINE
• Property taxes. Why?
• Water taxes. Why?
• Carbon taxes. Why?
16. QUESTION
• From the point of view of the homeowner, would you rather
pay stamp duty or a property tax?
• From the point of view of the government, would you rather
receive payment in stamp duty or in the property tax?
20. VALUE ADDED TAXES
• What’sthe point of them? They capture different consumption
behaviours
21. SUMMARY
• Taxation systems works to
redistribute. Sometimes
changing this is painful,
sometimes not.
• Big
Q: Tax breaks to change
Limerick’s Georgian Core?