Ireland balances books for first time in 10 years
In his latest budget, the country's finance minister also announced a 鈧�300 million Brexit fund aimed at helping small businesses.
Tuesday 10 October 2017 19:52, UK
Ireland has managed to balance its books for the first time in 10 years as the country continues its remarkable economic recovery.
The country's economy contracted 22% in the aftermath of the global economic crash in 2008, plunging it into debt and forcing a bail-out by the European Union.
But following years of austerity and foreign investment, with companies attracted by its low corporation tax, it has in the past year become one of the fastest-growing economies in Europe.
However, finance minister Paschal Donohoe has dedicated a section of his new budget to help deal with the possible negative impact of Brexit.
That includes a special €300 million loans scheme for small businesses, including the food sector, whose main export market is the UK.
New staff will also be employed to meet what Mr Donohoe said were "challenges and opportunities arising from Brexit", while farmers and agri-food businesses will get extra support to deal with the impact of a fall in sterling.
With strong economic growth and falling unemployment, the finance minister said "balancing our books in 2018 will mean we can devote extra resources to tackling national needs in 2019".
Those measures included extra spending in capital expenditure, for schools and hospitals, as well as hiring 800 new police officers.
Like the UK, Ireland will also introduce a sugar tax next year on drinks at a rate of 30 cents per litre on drinks with more than eight grams of sugar per 100 millilitres and a reduced rate of 20 cents per litre on drinks with between five and eight grams of sugar per 100 millilitres.
Despite concerns from some parts of Europe regarding Ireland's low corporation tax, the government made it clear it would not be changing course.
"Our position is clear," Mr. Donohoe said. "The 12.5% tax rate is, and will remain, a core part of our offering."
With Ireland gripped by an unprecedented housing and homelessness crisis, the government also announced a raft of initiatives including launching a state run scheme to help build more social homes.
Overall, the finance minister said: "This budget achieves sustainable and affordable tax reform, delivers improvements in services, and ensures increased investment in our national infrastructure.
"We are broadening our tax base to make it more resilient and secure in the future. As a country, we normally make these decisions at times of national difficulty. Let us resolve to do this differently now."
This is the second of three budgets which complies with the confidence and supply agreement with the main opposition.