This is Brian Cowen’s third budget and the last before next year’s election. In his opening statement, Minister for Finance, Brian Cowen attributed the success of the Irish economy to the hard work of the Irish people.

Cowen’s budget sets out to reward this effort with an increase in tax credits, and a widening of the tax bands. Economic buoyancy enabled Cowen to reduce the top rate of tax from 42% to 41%, with a promise of a further reduction to 40% the following year if the coalition government is returned to office.

The budget also marked the achievement of the promise made by Fianna Fáil to increase the old-age pension to €200. Furthermore, with a €20 increase in the weekly rate of unemployment benefit, Mr. Cowen described the budget as the biggest support package for those on low incomes in the history of the state.

Was this an exercise in income redistribution or a cynical electioneering? While the budget was warmly welcomed by government back-benchers, opposition parties anticipated these cheers turning to tears. Joan Burton, the Labour Party finance spokesperson, said, “When Fianna Fáil see an election around the corner, their first instinct is to buy it”.

A RTÉ News report by David Davin-Power. This report is introduced by RTÉ Newsreaders, Brian Dobson and Sharon Ní Bheoláin.

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