Business Irish

Wednesday 24 May 2017

Government deficit falls to 1pc of GDP as revenue rises

The Department of Finance in Dublin. Photo: Aidan Crawley/Bloomberg
The Department of Finance in Dublin. Photo: Aidan Crawley/Bloomberg
Colm Kelpie

Colm Kelpie

The Government ran a deficit in the first half of the year equal to 1pc of the size of the economy, according to official figures.

But the national debt remained above €200bn, even though the debt-to-GDP metric dropped to 77.8pc as a result of the surge in GDP last year of 26.3pc.

Government revenue surged by over 3pc during the same period, helped by a 7.1pc increase in taxes, the data from the Central Statistics Office said.

Public spending was relatively flat compared with the same period last year.

In the Budget, the Department of Finance forecast that the debt ratio would fall to 76pc by the end of this year, reducing further to 74.3pc by the end of 2017.

But in monetary terms, while gross debt will be around €200bn this year, it will actually increase to €204.5bn next year, to €209.8bn in 2018, and €212.8bn in 2019.

In the first six months of the year, the Government had a deficit of €1.27bn, or 1pc of the value of the economy. That compares with €2.3bn, or 1.9pc, over the same period last year.

Government revenue increased by 3.4pc to €34.5bn when compared with the same period last year. This increase was driven by a 7.1pc increase in taxes which was partially offset by a reduction in investment income of €654m.

Indo Business

Promoted articles

Also in Business