The Irish government Monday announced 3.8 billion euros (5.1 billion dollars) worth of spending cuts and tax hikes in the 2012 budget, according to dpa. Announcing savings in health care, education and other public services, Minister for Public Service and Reform Brendan Howlin said that he had been forced to make "unpalatable decisions" in the face of "the greatest economic crisis in living memory. " "As a Labour minister, I never thought I would have to make the type of announcements I'm making today," said Howlin. Cuts in social welfare include the basing of job seeker's benefits on a 5-day week rather than a 6-day week. The health budget is being reduced by 26 per cent. A reduction in the numbers of the employed, and containing paycosts in the health service, will save 145 million euros, while introducing measures to reduce the price of drugs is to save a further 112 million euros, the minister said. There will also be changes in the monthly income thresholds for the drug payment scheme. The minister also announced 2 per cent "efficiencies" indisability, mental health and children's services. The winter fuel benefit season will be reduced from 32 weeks to 26 months, while the public service pay bill will be reduced by 400 million euros, chiefly through the reduction of allowances and overtime. Changes to the one-parent family benefits system means that there will be payments for the child only up to the age of seven. Standardising the rate of child benefit for all children will produce savings of 59 million euros next year. Under the current system the third and any subsequent children receive a higher rate of children's allowance. There will also be reductions in back-to-school grants for primary and secondary school children. Capital grants to schools are to be reduced by 2 per cent, while student support for new postgraduate students will be cut.
