DAVY VIEW

Today’s Budget for 2022 was almost exactly in line with expectations, a €4.7bn package with just €500m of tax cuts. However, it was good to see the balanced budget target restored and the government effectively banking the unexpected strong performance in corporate tax receipts in 2021. Ireland’s deficit is forecast to be just €13.2bn (3% of GDP) in 2021 and €8.3bn (1.8% of GDP) in 2022. As expected, the Help-to-Buy scheme and Employment Wage Subsidy Scheme were extended into 2022.