Dáil Éireann Debate, Thursday - 9 June 2011
63 Deputy Thomas P. Broughan asked the Minister for Finance the size of the projected total deficit in the budget 2011 current and capital accounts; the amount of that deficit that is composed of payments to banks and bondholders under the blanket guarantee; how the total State income breaks down between taxes raised by the State and troika moneys; and if he will make a statement on the matter. [14940/11]
Amharc ar fhreagraThe Stability Programme Update (SPU), which was published at the end of April and submitted to the European Commission, updated the economic and budgetary forecasts contained in Budget 2011. The SPU projected an Exchequer deficit in 2011 of €18,165 million, made up of a €12,035 million current budget deficit and a €6,130 million capital budget deficit. The bank guarantee has not been called upon, so no money has been paid to the banks and bondholders under the guarantee. Indeed, the current-side of the Exchequer account benefits from fees paid under the bank guarantee schemes. At end-May, some €286 million had been received in this regard as non-tax revenue, with a total of €800 million expected for the year as a whole.
Of course, there has been and is a large cost associated with bank supports and these have been widely documented. For example, in terms of 2011 cash spend, there is a non-voted capital expenditure payment of approximately €3.1 billion, representing the first instalment of the Promissory Notes issued to Anglo Irish Bank, Irish Nationwide Building Society and Educational Building Society, the purpose of which was to provide capital injections to these financial institutions. However, this amount does not impact the General Government deficit in 2011.
As regards 2011, the SPU projected tax revenue receipts of €34,900 million. Taking account of this projected tax revenue, the Exchequer deficit, as outlined above, is projected at €18,165 million. The Deputy may like to bear in mind that the figure for the cash deficit differs from the General Government deficit, which is projected at €15,665 million. The funding which is available for sovereign purposes under the EU/IMF Programme of Financial Support is not an income of the State. Rather it is essentially borrowing which is used to fund the difference between the State's revenues, including those from tax receipts, and the State's expenditures, namely the Exchequer deficit. As of end-May 2011, approximately €22.4 billion has been drawn down from the EU/IMF under the Programme, with a total of €38.4 billion projected for the year as a whole.
