Budget 2022: Political divide opens up between Coalition and Sinn Féin

The budget is about figures on one level, but at heart it is an inherently political statement. Sinn Féin’s spokeswoman on public expenditure, Mairéad Farrell, early in her reply, spoke about it essentially revolving around “political choices”.

When you course through the document, there are hundreds of measures that will impact the lives of Irish people over the next 12 months.

At its essence, this is a centrist Coalition, and the impact of those measures tends to be subdued rather than dramatic. A bit of giveth, a bit of taketh away. That kind of thing.

But there are some budgetary decisions that distinguish this Coalition from the Opposition parties, and in particular the main Opposition party. It sets up very different choices for the electorate to make in the next election.

Budget 2022: give and take in the biggest political set piece of the year

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Budget 2022: A bigger spending package would have been ‘too risky’, Donohoe says

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Remote working tax relief could be worth about €100 a year for some workers

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Pat Leahy: Budget was centrist, incrementalist – and looking nervously over at Sinn Féin

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There is, for example, a markedly different approach in relation to taxation. This budget included a €528 million tax package that increased the band for the higher rate of income tax by €1,500. That benefited middle-income earners by more than €400, a sum that might not stave off rising inflation. Still, it was a gesture.

In Sinn Féin’s view, no tax cuts were justified. It proposed vastly more spending than the Government’s €4.7 billion package, part of which would be paid by additional borrowing, and €2 billion of which would be funded by a slew of stringent new taxes aimed at high earners – ie those earning €100,000 or more.

In addition, the party has proposed the abolition of the property tax and has opposed the €7.50 increase in carbon tax being introduced.

From both sides a clear statement of intent, one bobbing along the middle, another decidedly to the left.

There are similar divides to be found on housing policy, healthcare, transport and social welfare. It’s the clearest example of the kind of political divide emerging that just did not exist when the two big centrist parties were dominant.

Jennifer Bray has collated all the main features of the budget in the main news piece.

Pat Leahy's excellent analysis also explores the chasm between the outlook of Government and that of Sinn Féin.

He writes: “It is far from clear if this expanded State will be either big enough or generous enough to satisfy the demands of a public which is showing signs of tiring with the cautious incrementalism of Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath and their parties.

“The budget was the embodiment of their steady-as-she-goes centrism, a reasonably generous package spread widely, and therefore thinly.

“But across the Dáil chamber the alternative on offer from the Opposition is no longer a promise of a more efficient or just slightly different centrist government - it is something much more left-wing, more redistributionist, more radical. It is also, the opinion polls which show Sinn Féin powering ahead would suggest, more in tune with the current public mood.”

Miriam Lord on Budget Day: We understand Joe Duffy slept in an oxygen tent last night to prepare for the reaction to free contraceptives announced by The Two Johnnies

Other reads

Marie O'Halloran reports on the first vote on the budget, a 50 cent increase in the price of a packet of 20 cigarettes. It was not without controversy with several TDs, including Sinn Féin's Matt Carthy, arguing for a less steep hike.

Cormac McQuinn reports the new Zoned Land Tax was one of those measures that came under strong attack from the Opposition. Its rate of 3 per cent per annum is less than the 7 per cent of the old tax, and it will take two years before being fully operational. Tánaiste Leo Varadkar defended it on the basis it will be recurring and will be effective as it will impact on the bottom line of those who hoard land.

Jack Horgan-Jones reports on Government back-bench reaction to the budget. Not entirely flag-waving, it must be said.

A wonderful piece on the last Irish-born mayor of New York City.

Budget remains in focus

You think the budget is over? Think again. It will dominate today in the Oireachtas and on the airwaves. At 10am on RTÉ’s Today with Claire Byrne, Paschal Donohoe and Michael McGrath will respond to listeners’ questions.

Cardinal rules for any politician responding to a member of the public is to remember their name and to show empathy. With these two politicians expect those rules to be followed in spades.

In the Dáíl the budget debate will continue with the Taoiseach, Tánaiste and Sinn Féin leader among those who will be getting in on the act.

The five Government departments that did not hold press conferences yesterday will do so today in Government Buildings.

Non-budget playbook

The most interesting non-budget item is the Fine Gael Private Members’ motion in the Seanad that rejects the British government’s proposal for dealing with the past including amnesties for those who committed murder.

The criticism, you suspect, will not be confined to the British government but will also include Sinn Féin.

The committees also return to normal duties today. The enterprise committee is examining the Consumers Rights Bill, the European affairs committee is conducting an engagement on the State of the Union, while the finance and public expenditure committee will have Prof Gary Murphy among its guests as it discusses the Regulation of Lobbying Bill.

Later in the afternoon the agriculture committee is discussing the really important nitrates directive and the impact of nitrate spillover on water quality in Ireland.