Irish economy

September’s exchequer returns point to smaller deficit in 2020


September’s exchequer returns show tax revenues remaining resilient and the growth in spending moderating, leaving our forecast for the 2020 deficit to equal €22bn (6.3% of GDP) on track or even a little conservative. However, the better-than-expected public finance data will add to political pressure for more stimulus in October’s Budget for 2021. We would expect at least €3bn (1% of GDP) of measures, which may push up the Department of Finance’s opening deficit forecast of 4.5-5.5% of GDP in 2021.

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Oct 5 2020, 07:58 IST/BST