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Why the €6bn hole in the public finances looks like bad news - but it’s not really and here's how

David Chance


Corporation taxes show State finances can ride Covid-19 budget shock, writes David Chance

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The performance of Apple and other tech giants through the crisis gives us confidence that the revenue stream will continue, writes David Chance. Pictured is the Apple European HQ, Hollyhill, Cork

The performance of Apple and other tech giants through the crisis gives us confidence that the revenue stream will continue, writes David Chance. Pictured is the Apple European HQ, Hollyhill, Cork

The performance of Apple and other tech giants through the crisis gives us confidence that the revenue stream will continue, writes David Chance. Pictured is the Apple European HQ, Hollyhill, Cork

A €6bn hole in the budget may look like bad news, but in fact the reverse is true - Ireland’s tax base is holding up despite the worst recession in history and a million-plus people dependent on the State for at least part of their wages.

To be sure, welfare payments surged by €5bn-plus and pushed spending for the year to May to €26bn, but we knew that was going to happen, it was fully costed in the revised budget forecasts issued by the Department of Finance when Covid-19 hit.

From now on, with construction workers back on site and others set to start returning to work, those payments will only start to fall, so in one sense, albeit a narrow one, much of the red ink in State finances is over.