Finance Minister has delivered his second Budget speech in the Dail. Mr Cowen said the Budget had two key objectives - sustaining economic growth and providing improved equality and opportunity for all.
Among the main provisions, the contributory old age pension rises by €14. Non-contributory pensions go up by €16 per week.
A new pakage of measures will encourage the care of older people continuing to live in their own homes. These will include new home care packages, more day care support and additional palliative care.
Mr Cowen announced a five-year investment programme for childcare. It aims to create an extra 50,000 childcare places. And from March next, mothers of new born children will have an additional four weeks paid maternity leave, extending the duration of such leave to 22 weeks.
In child benefit the monthly rate for the first and second child is to rise this year to €150 and the rate for third and subsequent children will increase to €185.
The main excise and VAT rates are unchanged. The Employee Tax Credit rises by €220 per year and the basic personal tax credit by €50 per year single and €100 per year for married couples. The standard rate income tax band is being raised by €2,600.
The Minister said the Government expected economic growth of 4.8% this year, when measured by gross national product. GDP growth would be 4.6%, The Department is forecast growth of between 4.5% and 5% next year, with employment growing by 60,000 and unemployment remaining low at 4.3%. He said inflation should average 2.7% next year.
The Government is setting a target for a general government deficit of 0.6% next year, with a debt ratio of 28% of GDP.
Public spending next year will rise by €5 billion, or just over 11%. Day-to-day spending will grow by just under 10% to €43.8 billion, including €400m to meet the cost of repaying nursing home charges. Capital spending will come close to 5% of GNP.
Minister Cowen said he was determined to secure value for money at all levels for Government spending, adding that he would be introducing new forms of construction contracts next year to ensure better delivery of capital projects.
