A Risk-Averse Budget

When the Exchequer is so healthy and in the run-up to an election we will find a lot that is good in the Budget.  There is much largess to distribute and many will benefit - some more modestly than others.  The sense one gets from the overall shape of the Budget is that Fianna Fáil does not want to offend anyone.  Take the €1,000 a year child care supplement.  It will be available to all regardless of means.  This will cost €353 million a year and its effects will be far too diffuse.  A proper targeting of resources where they would be more effective would have meant making tough political choices.  Despite having been spanked earlier in the year by the voters of Meath and North Kildare who were struggling with the high costs of childcare, FF seem more concerned in this budget not to offend "stay at home mothers".

There is no willingness by any of the political parties to consider taxing child benefit. Wealthy families that could easily go without will receive childcare and child benefit payments of nearly €2,550 per child next year, while families at serious risk of poverty receive the same amount.  So an increase of about €19 per week is proposed for every child in the state under the age of six but child-dependent allowances - targeted at the poorest children in the State - remain frozen.  Organisations such as Bernardos and St. Vincent de Paul have expressed concern about the lack of targeted payment for struggling families.  Such groups are very much aware of the existence of the poverty and employment traps that exist and are capable of identifying where the targeted resources would make a difference.  Unlike most political parties they are not concerned with interfering with the prerogatives of the prosperous and that's why they are prepared to consider taxing child benefit. 

Comments

[redrover]

Id have to agree, the budget was one intended to offend as few people as possible. There were no enemies made yesterday to lurk in the long grass for the year. That meant no one got a runaway improvement, ie poorer children/families at any others expense.
Its interesting to those who are trying to point out the key people demographically in this budget. Who was cowen trying to win over?
Macwilliams urbaintes/popes children still seem the best bet since they dont really like to vote but might be persuaded by a focussed enough effort (transport 21, budget and who knows what next).
RR