The Minister for Finance Brian Cowen said tonight a major health spending package was going to be unveiled in the Budget tomorrow.
Speaking on RTE News Mr Cowen said that while the outline of the package would be revealed tomorrow "the Minister for Health [Mary Harney] will have a more detailed announcement to make early next week, in terms of her plans for this whole area."
He also strongly hinted that it would be necessary to raise addtional funds to pay for this package and that we would be looking to ensure that those "who are best able to meet the costs can meet it".
Mr Cowen said that the Government would seek to meet its commitment to reduce the top rate of tax, with a 1 per cent cut in the 42 per cent top rate now widely expected.
"There are other commitments there which to be looked at in terms of whether economic circumstances were appropriate, or not. Tomorrow will determine if they are or not."
Mr Cowen said the Government hoped to "look after" people who depended on the State for their income in a way that may not have been possible in the past.
His leeway to meet the many claims for funding was significantly improved yesterday when the Exchequer returns for November saw the highest-ever monthly revenue figures in the history of the state.
The €10 billion Exchequer receipts for last month are almost equal to state funds for the whole of 1990 only 16 years ago.
With these better-than-expected Government earnings, Mr Cowen may be persuaded to:
- trim up to 1 per cent off the 42 per cent top rate of income tax while spending a further €1 billion on tax relief spend €1.5 billionon childcare and social welfare payments
- give tax breaks for first-time home buyers
- boost the old age pension to approximately €208
Head of lobby group, Cori Justice, Fr Sean Healy expects the Government to fulfil a number of key commitments like increasing social welfare rates.
The veteran analyst, who tomorrow oversees his 21st Budget, famously called for policies to help the poor and disadvantaged at Fianna Fail's annual think-in at Inchydoney, West Cork in 2004.
He now believes Mr Cowen will raise minimum social welfare payments to 30 per cent of the gross average industrial wage.