Sunday 28 May 2017

Government sticks to 3pc deficit target: Lenihan

Louisa Fahy

Finance Minister Brian Lenihan said the Government is sticking to its target of narrowing its fiscal deficit to 3pc of gross domestic product by 2014, even after the European Commission said the shortfall amounted to 14.3pc last year.

The commission today revised its estimate of the deficit in 2009 because it reclassifed €4bn pumped into the nationalised Anglo Irish Bank as general government spending.

The commission said last year it expected Ireland’s deficit to be about 12.5pc.

“There is no additional borrowing associated with this technical reclassification,” Lenihan said in an emailed statement.

“This is a once-off impact, and will not affect the Government’s stated budgetary aim of reducing the deficit to below 3pc of GDP by 2014.”

Bloomberg

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