Business Irish

Saturday 24 February 2018

Government overspending worse than previously calculated last year

Donal O’Donovan

GOVERNMENT overspending was worse than previously calculated last year, according to the European statistics agency.

The deficit, the gap between how much is taken in the form of taxes and how much the state spends, was 13.4pc of GDP not 13.1pc as previously estimated, according to Eurostat.

The figure had to be revised because the statistics agency re-calculated its treatment of €16.5bn pumped into the banks last year.

It thinks €6.8bn of that money should be effectively written off, by treating it as a “transfer” not as an investment.

The 2011 Irish deficit was the worst in Europe.

Even so it was dramatic better than the 30pc overspend the previous.

In better news the statistics office said it no longer has any reservations about Irish data relating to restructuring plans for the banks.

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