COALITION LEADERS ARE meeting with Finance Minister Michael McGrath and Public Expenditure Minister Paschal Donohoe this evening to get an update on budget negotiations.
Ahead of the meeting, McGrath told Fianna Fáil colleagues that he believes the “core Budget” and the one-off measures in it “will make a real difference”.
He added that it will be a “good” budget, “notwithstanding the volatility in the international markets”.
TDs are said to have spoken out about the rise in excise duties and to have expressed “strong views” that the reversal of excise cuts to petrol and diesel due to occur on 31 October should be deferred.
Cabinet ministers have been meeting with McGrath and Donohoe this week to make their case for their respective departments ahead of next Tuesday’s Budget Day.
Sources have described the bilateral meetings with the ministers that hold the purse strings as “tough”, with one minister stating that the expectation level of the public hasn’t a hope of being met.
Taoiseach Leo Varadkar stated yesterday that meetings would be taking place throughout the week, adding that it would be Sunday before any decisions were finalised.
At tonight’s Fine Gael parliamentary party meeting, the Taoiseach updated his party colleagues on budget matters.
Varadkar said the budget “was still coming together” and that remaining issues will be worked out at further meetings between the party leaders at the weekend.
He also stated that the budget will have a USC package that “rewards work and puts money back in people’s pockets”.
Varadkar added that this would include a cost of living package that people will see the benefit of before Christmas.
However, he cautioned that the budget would have to take account of “prevailing economic circumstances, such as inflation”.
Meanwhile, Minister Donohoe told colleagues that the most recent corporation tax receipts, which declined by 12% in September, would not alter budget planning as this work had already been undertaken.
McGrath told the Fianna Fáil party that there was a need to “get inflation down to 2%” and added that from a tax perspective, there will be an “emphasis” on small to medium businesses.
He added that Ireland is in a “strong position” and is able to spend more on infrastructure and to “provide for the future”.
“There are clear challenges in Social Protection and Health, which are being worked through,” he said.
“There will be a fair distribution of benefits for low and middle income workers. There will be an emphasis on small to medium indigenous businesses too. Existing schemes will be improved to ensure they are fit for purpose.
“On housing, our spending commitment will continue, with a focus on supply, making better use of existing stock and ensuring a supply of rental properties,” said McGrath.
Tánaiste Micheál Martin commented that there was “more room for manoeuvre last year” but expressed his support for the budget’s ability to deliver.
The Tanáiste noted the launch of Sinn Féin’s alternative budget launched today, noting that the party would scrap the Help to Buy schemes which would hit first time buyers.
-With additional reporting from Diarmuid Pepper
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