Brian Lenihan the finance minister delivered the toughest budget in the history of the state. The main points include:
– €3 billion in tax rises and spending cuts
– Doubling the income and health levies
– Cutting child benefit
Typically a person earning €100,000 per annum will pay an extra €333 per month into the governments coffers.
In other news Moody’s increased its expectation of losses on Irish bank loan portfolios due to continued deterioration in real estate prices, the likelihood of more corporate defaults and the erosion in residential loan performance.
Straightened times indeeed.