gov.ie - Budget 2004

Budgetary Objectives

thereby giving the resources needed for social inclusion

General Government Deficit at 1.1% of GDP

€300 million in tax reductions
Employee (PAYE) tax credit increased by €240 to €1,040 per annum
90% of minimum wage will remain out of the tax net
Income Tax exemption limits for those aged 65 years and over increased by €500 to €15,500 p.a. single and by €1000 to €31,000 p.a. married
Over 41,000 taxpayers will be removed from the tax net next year
Tax Allowance for Trade Union subscriptions raised to €200 p.a.

Business Expansion and Seed Capital Schemes extended to 31 December 2006. Company limit increased to €1 million
Film Relief extended from end-2004 to end-2008. Cap on funding amount (per film) eligible for tax relief increased from €10.48m to €15m from 1 January 2005
New tax credit for R&D by firms to encourage higher value jobs
New Holding Company tax relief to encourage head-office firms and jobs to come here
Renewable Energy Tax Relief extended to 2006
Urban Renewal Scheme and other Schemes extended from 31 Dec 2004 to 31 July 2006

From mid-night 3 December:

Increase in annual tax exemption limits for leased farmland - €7,500 for 5 to 7 year leases, €10,000 for 7 years or more. Age limit lowered from 55 to 40
Farmers/Flat Rate VAT raised to 4.4%
Gaeltacht summer college (mná tí) income exempt from tax
Capital allowance for farm pollution control measures extended for 3 more years
New Rural Social Scheme to create up to 2,500 community-related employment places

(from January 2004, except where stated)

€630m full year increase in Social Welfare as follows:
Increases in rates well ahead of inflation
Maximum rates for old age and related pensions increased by €10 per week
Over 66 Widow(er)'s Contributory Pension and Deserted Wife's Benefit increased by €11.50 per week
All other personal weekly rates increased by €10 per week
Special Increase of €16.10 in the Invalidity Pension Qualified Adult Allowance rate where the qualified adult is aged 66 or over
Child Benefit to increase by €6 (1 st and 2 nd children) to €131.60 per month and by €8 (3 rd and subsequent children) to €165.30 from April 2004
Family Income Supplement income thresholds increased by €28 per week and a €7 increase in the minimum payment
Increase in Respite Care Grant to €835 per annum from June 2004
Increase in Widowed Parent Grant to €2700 from Budget day

Additional €25 million allocation to assist persons with intellectual, physical or sensory disabilities

For new entrants, the Government is introducing the following:

Minimum pension age increased to 65 for most new entrants from 1 April 2004
Minimum pension age for certain categories (Gardaí , Prison Officers) to be increased to 55 , and Defence Forces to 50
Minimum pension age increased to 65 for Oireachtas members and Office Holders elected or appointed on or after 1 April 2004
Present compulsory retirement age of 65 will be removed for new entrants enabling staff to remain in work if they wish

For existing public servants:

New integration arrangements with Social Welfare to assist lower paid public servants
A single Additional Voluntary Contribution type scheme is to be introduced

5 year rolling envelopes for all capital investment. Commitment to keep capital investment at up to 5 per cent of GNP during next five years
Extra €30m for School Building works

Additional once-off €30m provided in 2004 for the Exchequer contribution to the Local Government Fund