In an unprecedented move, the Minister for Finance has announced that Budget Day 2009 is being brought forward by seven weeks to 14 October 2008. It therefore follows that the Finance Bill will most likely be published before Christmas. As in previous years, a special ICAI eNews will be sent out to all members on the night of the Budget.

According to the Government Statement, the change in date will reflect the necessary prioritisation of expenditures in the light of expected tax revenues. In addition, it is expected to “give clarity and confidence to investors and taxpayers alike, and provide a sound basis for economic recovery”.

The Government Statement outlined the Minister for Finance's position on the change of date:

• He is expected to set out steps to stabilise and restore balance to the public finances, by amongst other things prioritising current and capital public expenditure to reflect the changed circumstances.
• The change in date is seen as a move to protect the gains that Ireland has made by ensuring responsibility in the public finances.

According to the Minister, Ireland is better placed than most economies to meet the challenges ahead with its low debt rate, its educated and young workforce, and its low tax environment for workers and business.

Ironically, back in the day when our tax year started on 6 April, Budget Day used be held in January – about ten weeks before the tax changes would normally take effect, as will be the case for next year. The 1999 Budget was announced in 1998 – as the then Finance Minister Charlie McCreevy pointed out, that was the first time that the Budget has been introduced before the beginning of the year to which it related.

The revised Budget Date must call into question the necessity of the special tax payment date rules for November. The rationale for these was to have figures ready in advance of the Budget Day announcement. The earlier Budget Day this year suggests that those figures may not have been quite as essential as they were portrayed.