Every year, we’re promised a budget giveaway. It’s an illusion

THE great budgetary trick we get every year is the illusion that there is a great giveaway. The main sleight of hand used is to conveniently ignore inflation.

In this way, ‘Prospero’ Donohoe can claim credit for increases in spending, even though they amount to little or nothing after inflation.

Inflation is expected to edge up to 1.35% next year. Even at that low level, it would erode the value of a contributory pension by €3.28 a week.

Just maintaining that pension’s buying power requires that much of an increase.

But the Government insults our intelligence every year by claiming credit for any increase in social welfare payments as if inflation doesn’t exist.

Last year, the Government announced around €335m in tax