Dáil Éireann Debate, Thursday - 15 November 2012
36. Deputy Pearse Doherty asked the Minister for Finance the level that the general Government deficits from 2008 to 2009 would have been excluding deficit increasing direct payments to the banks from the general Government sector and excluding deficit reducing direct receipts from the banks to the general Government sector and what this is expected to be for 2012; and if he will make a statement on the matter. [50237/12]
Amharc ar fhreagraAlthough the previous Government issued a Guarantee to the banks in September 2008 there was no negative impact on the General Government Deficit in that year. Fees from the covered institutions for the Guarantee lowered the General Government Deficit by €110 million and €439 million in 2008 and 2009 respectively. In addition the receipt of preference share dividends from Bank of Ireland and Allied Irish Banks lowered the General Government Deficit in 2009 by €387 million. In 2009 the General Government Deficit was worsened by the €4 billion capital injection into the then Anglo Irish Bank. In addition, the National Pensions Reserve Fund invested €3.5 billion each in both Bank of Ireland and Allied Irish Banks. However, these payments did not affect the General Government Deficit.
The General Government Deficits for 2008 and 2009 were €13.1 billion and €22.5 billion respectively. Excluding the effects of these interventions, GGB would have been €13.3 billion and €19.3 billion in 2008 and 2009 respectively. The Medium Term Fiscal Statement published yesterday, 14th November, shows an expected General Government Balance for 2012 of €13.5 billion, or 8.3% of GDP.
