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Huge cuts revealed in four-year fiscal plan


24.11.10

The National recovery plan 2010 - 2014

The Government today unveiled a raft of budget measures to restore the State's finances by 2014.

Measures include cutting social welfare by €3bn, reducing the public sector pay bill by €1.2bn and increasing VAT by 2%.

The budget roadmap includes the following savings and tax reforms:

- €10 billion in spending cuts
- 40% Frontloaded into 2011
- €15 billion in savings over 4 years
- Interim property tax on €100
- Income tax back to 2006 levels
- Taoiseach  - economy to grow to 2.75 percent next year
- Taoiseach - economy to grow to 2.75 percent each year to 2014
- 10 per cent pay cut for new entrants to public service
- Cut public service staff numbers by 24, 750
- Maintain 12.5% corporation tax
- Reduction in minimum wage by €1 to €7.65
- Vat up 1% in 2013 and 1% in 2014
- Pension related tax reliefs to be reduced
- Increase student contribution to the cost of the third level education
- Unemployment will fall by 10% by 2014
- 90,000 jobs will be created between 2011 - 2014
- Price of carbon to be double over 4 years
- Review of teacher contracts
- Overhaul of business expansion scheme
- Measures to reduce legal costs
- Higher-level student contribution of €2,000



TV3 News Crisis Special
Hosted by Alan Cantwell. Details and analysis of the four-year emergency Budget plan broadcast live from Government Buildings.