Dáil Éireann Debate, Wednesday - 31 March 2021
355. Deputy Jim O'Callaghan asked the Minister for Finance the status of the public finances; if the forecasts made at the time of the October 2020 budget have been revised; and if he will make a statement on the matter. [1856/21]
View answerThe end-year Exchequer returns show an Exchequer deficit of €12.3 billion was recorded in 2020 - a deterioration of almost €13 billion on the surplus of €647 million recorded in 2019. An Exchequer deficit of this level is consistent with a general government deficit of c. €19 billion, or around 5 ½ per cent of GDP.
The year-on-year deterioration in the public finances was primarily driven by large increases in current and capital spending as Government responded to Covid-19.
Overall, revenue proved remarkably resilient, with persistent strength in income tax receipts and further growth in corporation tax compensating to an extent for steep declines in other tax streams, particularly on VAT and excise duties. Tax receipts of €57.2 billion in 2020 were down by €2.1 billion or 3.6 per cent on 2019, a more muted impact than initially anticipated.
Total net voted expenditure to the end of the year was €67.8 billion, an increase of over 25 per cent or €13.7 billion on last year.
We are currently in a period of unprecedented uncertainty and the trajectory of the virus is very worrying. The impact of the current restrictions will have an obvious negative impact on the public finances, although, for now, it is too early to make any meaningful update to the forecasts made at Budget 2021. I will publish a new set of macro-economic and fiscal projections, as part of the Stability Programme Update (SPU) in April.
