Real budget details still "under wraps" - Reilly

Tomorrow is the day. Budget day. On the afternoon of Wednesday, December 5, in the Dáil Minister for Finance Michael Noonan will announce €3.5 billion in cuts and taxes. The Budget speech will end months of fearful speculation about changes to property and motor tax, child benefit, PRSI and social welfare benefits, to name but a few. Fine Gael TD and the only Cavan representative on the Government Joe O'Reilly said that while recent Budget leaks were "not far off the mark", the real details have been kept "tightly under wraps". The government must come up with a €3.5bn cut to 2013's budget - €1.2bn is thought to be from direct taxation and the rest in savage cuts. "I believe the budget will continue the process, that has been started so well, in correcting our nation's finances and working towards regaining our fiscal sovereignty," said the Bailieborough man. "I think people are looking for two things, and the Government is very conscious of this, that there are moves made on sorting this country out, away from an inherited situation of veritable insolvency, but that any and all of what needs to be done is done so with an element of fairness. That any cuts that are introduced are carried out across the board. "I do though hope that there is minimal affect to frontline services, that the needs of the most vulnerable in society are protected, but I feel this budget has been drawn up with necessity and understanding," said O'Reilly. Details of the Budget will be on the oireachtas website from 3pm today (December 5), due to the timing of the event, more in-depth reaction and coverage will feature on the Anglo Celt's website (www.anglocelt.ie) tomorrow and throughout the week. The Troika's greatest hits - the key areas Housing and property tax Predicted to be at a rate of €300-€500 a year per home. People living in council houses are expected to be hit with higher rents - with rises of €1 or €2 a week to bring in €50-€100 a year per house. Higher earners Universal Social Charge hike of 3% for those earning over €100,000, a 'Mansion Tax', a higher property tax on homes valued at over €1m. A cap on private pension tax relief at €60,000 as well as increases to the Capital Gains Tax and Acquisitions Tax. Caps to be introduced to salaries of high earners in the State sector. Fat and fizzy tax A levy on sugary foods and fizzy drinks with the cost of obesity estimated to be costing the stated in the region of €1bn Pensions- Legislative difficulty will mean the Government will not be able to retrospectively carry out cuts, but will look to do so in the future Cigarettes and Alcohol The old reliables, below-cost alcohol selling to be scrapped, and a duty increase on cigarettes . Also, a higher duty on off-licence sales of alcohol. Child benefit A reduction in the benefit per child is expected at €10 per child, down from €140 to €130, an extra €20m cut to the education budget is also being looked for. Cuts affecting the elderly Changes to the over-70s medical card and the home package of free TV licence, electricity and telephone allowances all expected, though the pension itself it believed safe. Social Welfare A cut to the time for which non-means-tested dole is paid, from 12 months to nine months. Medical cards A doubling of the 50 cent charge that medical card holders pay for medicines and other items on prescription, up to a maximum of 10 items per month. Income thresholds to qualify for an over-70s' medical card will be reduced from €36,000 for a single person and €72,000 for a couple to €30,000 and €60,000. Those who lose medical cards will get 'GP only' cards.