#Budget18: Everything you need to know
The Government has billed the country's new budget as a national response to new risks and opportunities.
Finance Minister Paschal Donohoe's first year charged with balancing the Republic's books is on course to leave average working families better off to the tune of €500 or 600 a year.
Outlining the near billion euro package of tax and spending, Mr Donohoe said: "We redouble our efforts to rise to the challenges that exist while mapping out our national response to the new risks but also to the new opportunities of tomorrow.
"We should do so, and I do so, with optimism."
Mr Donohoe was quick to point to some of threats to the Republic's economy as he declared that Budget 2018 was about "balancing the books".
The minister highlighted Brexit, the potential impact of US trade tariffs and various geo-political threats as three key issues his Government has to guard against.
"It will help reduce the chances that future crises are home-grown and will mean that our economy and public finances are in a better position to weather crises stemming from external factors beyond our control," Mr Donohoe said.
"The list of potential external risks is lengthy."
One of the first major announcements from Mr Donohoe confirmed plans for the so-called "rainy day" fund to protect against future economic downturns.
It will be kicked off with €1.5bn from the Ireland Strategic Investment Fund, which makes commercial investments with state finances, before annual payments of 500 million euro a year are made from 2019.
"This is another important step in strengthening the national finances in a changing and risky world, especially in light of Brexit," the minister said.
Addressing the homelessness crisis, the minister announced an allocation of €1.83bn for housing in 2018.
He said 3,800 new social houses will be built next year by the local authorities and Approved Housing Bodies.
He added that funding for Homeless Services will be increased by a further €180m to over €116m to ensure that emergency accommodation and other supports are available.
With Ireland gripped by an unprecedented housing and homelessness crisis, Mr Donohoe set out a raft of initiatives including one big-ticket item with a new state-run lending vehicle to get builders on to sites.
The Home Building Finance Ireland scheme will begin with €750m.
There was also a commitment to build 53,000 social homes by 2021 and from midnight commercial property deals will see a tripling of stamp duty to bring in €400m to the Exchequer coffers.
Mr Donohoe also moved on a long-awaited levy on vacant development sites.
The tax will more than double from 3% to 7% if the land is held untouched for a second or subsequent years.
Spending on health has been increased by €685m, bringing total funding to almost €15.3bn for 2018, reflecting an almost 5% increase, the minister said.
The allocation includes an additional 1,800 staff aimed at a range of frontline services across the acute, mental health, disability, primary and community care sectors.
A reduction in prescription charges for all medical card holders under 70 from €2.50 euro per item to €2 item, with a reduction in the monthly cap from €25 to €20, was also announced.
Mr Donohoe signalled that better spending for education will cut the pupil-teacher ratio at primary level to 26-1.
In a bid to slash skin cancer rates in Ireland - among the highest in the world - VAT on sunbed services is to soar from 13.5% to 23%.
To make a "healthier Ireland", the minister announced that excise duty on a pack of 20 cigarettes will be increased by 50 cents. This will bring the price of cigarettes in the most popular price category to 12 euro.
Also, a sugar tax is to be introduced on drinks at a rate of 30c per litre on drinks with more than eight grams of sugar per 100 millilitres and a reduced rate of 20c per litre on drinks with between five and eight grams of sugar per 100 millilitres.
Mr Donohoe dedicated a section of his speech to Brexit-proofing initiatives.
Among them will be a special €300m loans scheme - backed by the European Investment Bank Group, the European Commission and the Strategic Banking Corporation of Ireland - for small businesses, including the food sector.
Forty new staff will be hired in the Department of Business, Enterprise and Innovation and enterprise agencies to meet what Mr Donohoe said were "challenges and opportunities arising from Brexit".
Resources have been allocated to allow for the recruitment of an extra 800 gardai and 500 civilians during 2018, the minister announced.
The additional allocation for the justice sector in 2018 is €63m.
"The rationale for this investment is to develop a modern police force that delivers an exemplary level of service to the community," added the minister.
For farmers and agri-food businesses,€50m is being set aside for the Government to support those feeling the pinch from Brexit, along with an additional €25m in loans.
Farm land owners will also be able to lease out acres for solar panels and still class the land as agricultural for tax purposes, as long as the renewable energy projects cover less than half of the farm.
"(This) should support diversification, expand the generation of renewable energy and help tackle climate change," Mr Donohoe said.
Also on climate change, the minister will spend €36m on expanding energy efficiency programmes in the public, commercial and residential sectors and 17 million euro on a planned Renewable Heat Incentive and incentivising uptake of electric vehicles.
Also, people who use a company car which is electric will enjoy a 0% benefit-in-kind rate.
Social welfare payments will be boosted by €5, including disability allowance, carer's allowance and both Jobseeker's Allowance and benefit. There will also be a €5 in the state pension. The measure will take effect in the last week of March, the minister said.
A Christmas Bonus payment of 85% will again be paid to all social welfare recipients in 2017.
Mr Donohoe's message on Ireland's much-maligned corporation tax rate of 12.5% was as clear as that of any of his predecessors.
"Our position is clear," he said. "The 12.5% tax rate is, and will remain, a core part of our offering."
On income taxes, this is where the payback begins for average working families.
Taoiseach Leo Varadkar had already billed it as being worth €500-600 a year.
And Mr Donohoe said: "We cannot hope to remain competitive if someone on a relatively low income and who decides to work a few hours' overtime has nearly half that extra money taken in tax."
The threshold for the higher rate of income tax was being raised by €750 to €34,550.
This is being combined with changes to the deeply unpopular Universal Social Charge (USC) - a levy introduced during Ireland's economic collapse but targeted at all but the lowest earning workers.
The USC has an entry point of €13,000. A new 2% rate will kick in at €19,372, up from €18,772, so minimum wage workers will not pay the upper rates.
A second USC rate will drop to 4.75%.
Mr Donohoe said the top marginal rate of tax on income up to 70,044 euro will be 48.75% as a result of the changes.
Mr Donohoe said: "This Budget achieves sustainable and affordable tax reform, delivers improvements in services, and ensures increased investment in our national infrastructure.
"We are broadening our tax base to make it more resilient and secure in the future.
"As a country, we normally make these decisions at times of national difficulty. Let us resolve to do this differently now."
CONNECT WITH US TODAY
Be the first to know the latest news and updates
