Dáil Éireann debate -
Wednesday, 3 Jul 1996

Vol. 468 No. 1

Written Answers. - National Debt.

Joe Walsh

Question:

62 Mr. J. Walsh asked the Minister for Finance the total of the national debt on the latest date for which figures are available; the comparative figure for 1995; the plans, if any, he has to reduce the debt burden and concomitantly meet the fiscal criteria set out in the Maastrict Treaty. [14537/96]

Bertie Ahern

Question:

67 Mr. B. Ahern asked the Minister for Finance the level of the total national debt and foreign debt as of 30 June 1996. [14724/96]

Minister for Finance (Mr. Quinn)

I propose to take Questions Nos. 62 and 67 together.

The following table shows the national debt as at end-June 1996, broken down between domestic and foreign currency denominated debt, and the comparative figures for 1995.

	30 June, 1996	30 June, 1995
	IR£m	IR£m
Irish Pound debt	20,644	18,610
Foreign Currency debt	9,632	11,247
Total National debt	30,276	29,857

A succession of low budget deficits since the late 1980s, together with increases in gross national product (GNP), has resulted in a significant fall in the debt burden in recent years with the national debt to GNP ratio falling from a peak of over 125 per cent in 1987 to less than 90 per cent by end-1995.

Over the same period, gross general Government debt as a percentage of GDP, which is the relevant debt measure for the purposes of the Maastricht Treaty, has declined from almost 117 per cent to under 82 per cent. Based on the strong performance in recent years, Ireland has been adjudged to have met all the requirements set out in the Maastricht Treaty.

Government policy is to maintain budgetary prudence in order to continue to meet the fiscal criteria set out in the Maastricht Treaty. In this context, the 1996 budget allowed for an EBR of 2 per cent of GNP. This equates to a general Government deficit of 2.6 per cent of GDP which will make 1996 the seventh successive year in which the Maastricht criterion of a maximum 3 per cent has been achieved. It is expected that, in the coming years, continued budgetary prudence combined with strong economic growth will yield further significant reductions in the debt ratio.