Giveaway budget – Yes Please!

Michael Noonan - Budget

I’m listening to the commentary and the opinions about the upcoming budget.

Already the accusations are flying that Fine Gael/Labour will be trying to ‘buy’ the next election by making this a giveaway budget – putting smiles on voters faces and all of the different vested interests is a terrible thing?

I’m reading the Irish Examiner and DKM Economic Consultants are questioning the need for the government to pump significant sums into the economy this budget.

Their chairman Brendan Dowling has stated “As market conditions improve and the recovery takes hold, one may question the need for additional fiscal expansion in the upcoming budget

The Economic and Social Research Institute (ESRI) are making the same noises: “expansionary budgets could inflate the economy“.

This bunch went even further and requested in their latest report that “the government reverse its plan for €1.5bn of spending and tax cuts“. The report author stated “the increase in the pace of economic growth reinforces the case for a neutral budget this year” and “a reduction in personal taxation is not required for growth in household consumption

Guys … you have got to be kidding me?

The stats show our economy is growing at 6% but surely this is from quite a low base. Personal consumption is starting to grow not because of a huge increase in incomes but because confidence is returning and people are not petrified of spending.

In the last few years big chunks have been taken from all of our pay packets and we deserve to start getting some of this back as things improve – we have to start enjoying the fruits of our labour once again.

Ann Cahill has written a fantastic article in the same issue about how “Workers are ‘left behind’ in Recovery” – this is a fact based article based on the Eurostat report.

Please look at the unemployment figures – we have one of the highest numbers of long term unemployed in the European Union. Take a look at the issues we have with homelessness.

Take one look at the empty shops in our villages, towns and cities and wonder why is this the case? Thankfully there is some progress here and we are starting to see new places opening but there is still a huge way to go.

I welcome with open arms any increase in spending and reductions in taxes – let it come into our pockets and let us enjoy spending it and let us carefully get back to a much better country than the one we have right now.

Giveaway budget.. Yes Please! 

Greg Canty 

Greg Canty is a Partner of Fuzion PR, Marketing and Graphic Design, with offices in Dublin and Cork

 

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