Ireland spending budget slashes climb to $20 billion

The Obama administration certainly has a tough road ahead as it looks for methods to balance the United States spending budget, however imagine what it must be like for Ireland’s Taoiseach (Prime Minister) Cowen and Finance Minister Brian Lenihan. They had to design austerity measures aimed at keeping their whole country from careening into bankruptcy. Over the next four years, Cowen and Lenihan would like to cut $20 billion to bring the Ireland debt crisis under control, writes the BBC. Article resource – Ireland budget cuts climb to $20 billion by Money Blog Newz.

Massive bailout might be Ireland's next move

Ireland is taking numerous methods to reduce their budget, some of which contain; government job cuts, tax increases, minimum wage reductions, and increased property taxes. In addition to Cowen and Lenihan’s severe budget package, the Irish government is expected to negotiate a bailout with both the European Union and the International Monetary Fund that should be worth about $113 billion.

Nearly 25,000 public sector jobs to be cut

Cowen and Lenihan's plan to get Ireland out of debt consist not only of cutting 24,750 public sector jobs, but also of the $3.7 billion welfare cut and increases taxes to make an additional $2.5 billion. Minimum wage would be decreased by $1.34, down to $10.23 per hour. The value added (consumption) tax would increase from 21 to 22 percent in 2013, then to 24 percent in 2014. By 2014 homeowner taxes are expected to increase by $267, also known as a site value tax.

So as not to drive business away, however, Ireland’s 12.5 % corporation tax – which is relatively low by European standards – would not be increased by the Ireland spending budget cuts austerity plan.

Good outlook and negative feelings

To "make sure (the people) have hope for the future," is what Taoiseach Cowen says about Irelands financial plans, even though there are already lots of people ready to fight these new budget cuts. Calls for a general election to shake up the federal government have resounded, but Cowen has refused to comment on this before parliament votes on his austerity plan Dec. 7.

“Then the people can decide who they want to govern the country,” said Cowen.

Details from

BBC

bbc.co.uk/news/business-11829811

Back when 6 billion euros sounded good

youtube.com/watch?v=T_HVUBfW-Y