Irish Finance Minister Paschal Donohoe on Tuesday announced a raft of measures in spending increases and tax cuts for the new year budget.
In his budget speech to parliament, Donohoe said the health sector will increase by 680 million euros (803 million U.S.dollars) to 15.3 billion euros next year, an increase of 5 percent, adding that some of this would be used to recruit an additional 1,800 medical staff.
The Irish minister said the education budget will increase by 554 million euros to over 10 billion euros in 2018, a 5.8 percent increase on last year's budget allocation.
Over 2,200 extra posts in schools will be provided in September 2018, including 1,091 special needs assistants and 1,280 new teaching posts in schools in 2018, he said.
Donohoe also announced an additional allocation for the justice sector in 2018 of 63 million euros.
He said there will be resources to allow for the recruitment of an additional 800 police personnel during 2018.
Another 500 civilians will also be hired into the police force, he added.
In the budget speech, Donohoe pledged a total of 1.83 billion euros for housing in 2018.
Some 3,800 new social houses will be built next year by local authorities and approved housing bodies, he said.
On tax cuts, Donohoe said the point at which an income earner pays the higher rate of income tax will rise next year by 750 euros a year.
The entry point for single earners is to increase from 33,800 euros to 34,550 euros.
Donohoe said that a system where those earning an average wage are charged the higher rate of tax is unfair.
He said he will introduce targeted changes to the Universal Social Charge (USC) that reduce the rates but that does not narrow the USC's tax base.
The entry point to USC will remain at 13,000 euros.
But the 2.5 percent USC rate will reduce to 2 percent, while the ceiling for this new rate will rise to 19,372 euros from 18,772 euros to ensure full time workers on the increased national minimum wage of 9.55 euros an hour do not pay the upper rates of USC.
He also said he will reduce the 5 percent rate of USC to 4.75 percent, thereby reducing the top marginal rate of tax on income up to 70,044 euros to 48.75 percent.