The bad news that could mean you will have less money in your pocket after Budget 2022

The bad news that could mean you will have less money in your pocket after Budget 2022

The Budget for next year will be announced on Tuesday afternoon following weeks of deliberations by government Ministers.

Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath will both address the Dail in the afternoon as they reveal the specifics of the €4.7 billion financial package.

The areas of social welfare, healthcare, tourism and transport are all set to benefit from increased expenditure in the upcoming Budget.

However, good comes with the bad and as with the Budget, income boosts for the public will also be met with price increases in certain areas.

Cigarettes are usually an easy target for costs hikes and it seems it will be no different in the upcoming Budget.

Welfare recipients are required by law to claim their payments within a specific length of time.

The Budget will be announced on Tuesday.

There will be some pain in the Budget, with smokers set to be hit with another 50c on a pack of 20 cigarettes.

Elsewhere, the €7.50 a tonne increase in carbon tax will see the cost of filling your car go up by about €1.50 a go.

It is not known as yet whether the price of alcohol is set for a rise, but it is understood that the government is not eager to place any more financial burdens on businesses owners in the hospitality sector after a difficult 18 months.

Meanwhile, there are two major announcements that will not be included in Budget 2022.

It is understood there will be no further update from the government on the pandemic bonus, which had been earmarked for frontline workers.

Taoiseach Micheal Martin said the details of the bonus are still being considered but insisted that it was ‘not a Budget Day issue.’

Among the options being considered is a tax-free voucher of up to €500, and an extra bank holiday to recognise the efforts of frontline staff amid the pandemic.

There will also be no further announcement on the additional Bank Holiday, which is expected to be confirmed shortly after the Budget is finalised.

The two main days that have been suggested over the past few weeks are St Brigid’s Day, on February 1, and a Thanksgiving date in November.

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