Austerity Budget Tests Irish Patience

The Irish government has introduced a sixth austerity budget in just five years, cutting the budget deficit by €3.5bn through a combination of tax increases and spending cuts.

Among the harshest measures introduced were a €10 cut in the monthly child benefit allowance, and a significant increase in social insurance taxes.

But perhaps the most controversial cut was to the respite care grant.

It's been reduced by €325 per year - the money is paid to family carers, and over 100 carers travelled to Leinster House to protest the day after the announcement.

Politically, the cut is proving a hot button issue, with many commentators describing it as particularly harsh, given the relatively small amount of money involved in the overall budget.

Minister for Public Spending Brendan Howling said a decision was made to protect the core carers allowance payments, and other social welfare payments like old age pension and jobseekers benefit.

The budget contained harsh medicine for every person in the country

There was confirmation of a new property tax to be introduced next July.

Homeowners will pay 0.18% of the value of their home in tax per annum.

It's a hugely controversial measure - 30% of the Irish population has so far refused to pay a €100 household charge, which was introduced as an interim measure while the new property tax was being devised.

Motor tax has been increased, student registration fees have risen and DIRT tax on interest accrued on savings has gone up.

Even the comforts of booze and cigarettes are going to cost more - excise duty on a bottle of wine has increased by €1, and 10p on the price of a pint or spirits, and on cigarettes by 10c.

Other entitlement changes include a reduction of three months in the time someone qualifies for jobseekers benefit, and maternity benefit will be treated as taxable income costing new others an average of €800.

The Minister for Justice also announced the closure of 100 Garda stations around the country.

Tanaiste Eamon Gilmore said the budget was a tough one, but it meant that much of the economic readjustment that the country needed was now complete

"It is the Budget that is going to get us to 85% of the adjustment that has to be made, and will therefore put the end in sight for these types of measures and these types of Budgets," he said.

The budget has led to serious political tensions within the coalition government with many backbenchers, particularly in the Labour Party, unhappy with the changes announced.

However, the government enjoys a strong majority and there was no early indication that any TDs intended to break ranks and vote against it.

Both Taoiseach Enda Kenny, leader of Fine Gael, and Tánaiste Eamon Gilmore, leader of Labour have insisted that there will be no u-turns on the budget cuts despite mounting pressure.