A €2bn cost of living package will be announced alongside the Budget on Tuesday afternoon which will include double payments of a range of social welfare payments.
Along with income tax cuts, workers are expected to benefit from €50 increases in tax credits.
The increases will be less than last year, but will still hold pace against inflation — while the big reductions on personal taxation would be from the 1pc USC abolition and widening of the bands. So, the smaller credit increases have to be viewed against the hugely generous overall backdrop.
Meanwhile, a packet of 20 cigarettes looks set to increase again on health grounds, but there will be no added excise to motor fuels or alcohol.
The increase on a packed of smokes could be less than the 50c imposed last year, with pro-rata increases on other tobacco products, sources said.
The single person tax credit will increase from €1,875 to €1,925, it has been suggested. The married persons or civil partners rate then becomes €3,850.
The employee Tax Credit and the Earned Income tax credit both also go up by a similar ratio, to reach €1,925.
Widowed person or surviving civil partner in year of bereavement moves from €3,750 to €3,850, with a similar move for a widowed person or surviving civil partner.
“These increases to tax credits are one of the few things that have been missed so far,” a well-placed source said. “They are good to go right now, once the three leaders sign off.”
The Single Person Child Carer Credit will increase, along with the Incapacitated Child Credit and the Blind Tax Credit.
Tánaiste Micheál Martin speaking about the budget at the opening of the new Civil Defence HQ in Dublin
There will also be hikes to the dependent relative tax credit and the home carer tax credit — which can be claimed by households in which one of the adults stays at home, to care for children, for instance, meaning a number of people at an address are dependent on a single wage.
Arts Minister Catherine Martin secured €35m in funding to continue her basic income for artists scheme which will see the programme extended and expanded.
Ms Martin also received €140m from the Arts Council and €8m for Culture Ireland which promotes Irish arts overseas.
There will be record funding for the Arts Council of €140 million, to enable further investment for young people and children, and additional support for artist, venues, and production companies.
Additional funding for Culture Ireland, resulting in the highest ever allocation of €8 million in 2025, will enhance the overseas promotion of Irish creatives.
The minister also received €61m to promote Ireland has a holiday destination at home and aboard.
A capital spend allocation of €36m for Fáilte Ireland will also allow the agency to continue and expand its product development, including new tourism attractions in the regions. The budget for the sport arm of her department has increased by 10pc to €250m.
The overall 2025 allocation for Sport is over €230m, which marks a 10pc increase in funding from 2024. Additional funding will go towards continued activity in Sport Ireland to build on the success of the Olympics and Paralympics in 2024 as well as funding for the FAI to support inclusion initiatives.
Meanwhile, Health Minister Stephen Donnelly secured €30m in funding for new medicines in 2025.
Stamp duty on the bulk buying of homes will be hiked to 15pc in a bid to halt vulture funds squeezing out first-time buyers.
The Coalition leaders had three options – to hike stamp duty to 15pc, to extend the period during which the homes are bought to 18 months or to decrease the number of homes to five.
They last night opted to hike stamp duty.
