The Government’s budget deficit for 2020 is now expected to be €19 billion as Covid-related spending and weaker tax receipts push the public finances deep into the red. This is estimated to contribute to an overall general government deficit of €19 billion for 2020, which equates to 5.5 per cent of gross domestic product (GDP). As well as spending and tax receipts, the general government deficit includes borrowing by State bodies and various other financial transactions. While large, the €19 billion deficit figure is significantly smaller than the Government had feared, reflecting stronger-than-expected income tax and corporation tax receipts. It means that Ireland is likely to have the smallest government budget deficit of any euro area country in 2020.

Source: The Irish Times January 05, 2021 14:03 UTC