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Government records €9.5 billion budget deficit on foot of Covid-19 spending

The figure compares to a deficit of €625m recorded in the same period last year.

THE GOVERNMENT RECORDED a €9.5bn deficit at the end of August, latest figures from the Exchequer show.

The figure compares to a deficit of €625m recorded up to the same point last year, with the additional €8.8bn this year mostly attributed to increases in government spending.

According to the Department of Finance, the increase in spending reflects the response to the Covid-19 pandemic, particularly from the Department of Health and the Department of Employment Affairs and Social Protection.

There has been an increase in overall government spending of 28% or €9.5 billion compared with the same period in 2019.

Exchequer figures also show that tax revenue to the end of August was also down by 2.3%, or €802 million, on the same period last year.

VAT receipts to end of August were down by over €2.1 billion, or 21% per cent on the same period in 2019. And excise receipts fell by 15%, or €579 million.

However, tax revenues were similar in the month of August compared to the same month last year, down by €11m or 0.4% year-on-year.

This was due to a strong economic performance in January and February, as well as an increase in corporate tax receipts.

Minister for Finance Paschal Donohoe said the figures confirm the scale of the cost of fighting the Covid-19 pandemic.

“The Exchequer deficit to end-August reflects the unprecedented increase in public expenditure as a result of the Government’s support for our health service and the wider economy through this crisis,” he said.

“Although there are some positive developments – most notably in income tax receipts – a considerable and unprecedented amount of uncertainty remains.”

He added that the deficit underlined the extent of the economic challenge faced by Ireland.

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    Mute Oliver Jumelle
    Favourite Oliver Jumelle
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    Sep 2nd 2020, 6:49 PM

    Sure the taxpayer will pick up the bill!

    186
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    Mute Pauliebhoy
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    Sep 2nd 2020, 6:51 PM

    @Oliver Jumelle: That’s generally how it works

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    Mute Cian Martin
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    Sep 2nd 2020, 6:52 PM

    @Oliver Jumelle: a good amount has gone to the taxpayer over the last 6 months.

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    Mute Kevin McDonnell
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    Sep 2nd 2020, 6:53 PM

    @Oliver Jumelle: say that again, but slowly………

    23
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    Mute Franny Ando
    Favourite Franny Ando
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    Sep 2nd 2020, 7:00 PM

    @Cian Martin: I never got any!!!!!!!

    56
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    Mute KSham
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    Sep 2nd 2020, 7:05 PM

    @Franny Ando: bully for you!

    7
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    Mute Mickety Dee
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    Sep 2nd 2020, 7:48 PM

    @Oliver Jumelle: About 5k each so far

    3
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    Mute Eric Vdc
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    Sep 2nd 2020, 7:56 PM

    @Mickety Dee: grant.that s the deduction i see on my payslip every month

    14
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    Mute Jordan Osullivan
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    Sep 2nd 2020, 8:12 PM

    @Oliver Jumelle: in like a hundred years. Government borrowing is a joke at this stage. Most countries around world just borrow to fund borrowing ,all off Central banks eg the printing machine. Basically giving away free money. Traditionally high government spending would lead to inflation. But were at a stage where despite government’s pumping trillions into economy’s around the world inflation is dead.

    15
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    Mute David McDermott
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    Sep 2nd 2020, 8:14 PM

    @Oliver Jumelle: why who are you expecting to pay for it? Tooth fairy ?

    5
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    Mute DeWitt
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    Sep 2nd 2020, 8:43 PM

    @David McDermott: SF have a magic money tree. Could they help

    26
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    Mute B
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    Sep 2nd 2020, 8:53 PM

    @DeWitt: brilliant haha

    6
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    Mute Gerard Smith
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    Sep 2nd 2020, 9:14 PM

    @DeWitt: You live in a world where our whole way and quality of life is based on a cultural invention whereby we ascribe intrinsic value to a “concept” called money. Currency is not even linked to a standard of value anymore and the rules for governments to print it have become less less strict over time. It doesnt get much more “magic money tree” than this. So your argument is basically that theb SF magic money tree is more magic than other parties magic money tree. It’s actually hilarious when you think about it. Our societies are going nowhere until we get past this nonsensical way of organizing how productive they are. SF policies are no better or worse than the rest. It’s mass delusion.

    21
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    Mute 00100100
    Favourite 00100100
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    Sep 2nd 2020, 9:52 PM

    @Cian Martin:
    What tax payers?
    I pay taxes.
    They receive seemingly “free” monies no strings attached with bonus payments added and are encouraged to go on staycation becase of Covid-19.
    While i have to work at home, with 2 kids managing a team and tasks, spending most of the day on the con calls, trying to stamp some code, coordinating delivery, training new hires or managing personalities and at the same time babysit, entertain kids, deliver to and from school, make, breakfast, lunches, dinners….
    Yes..
    Tax payers my ars… cheep shoot consumers at best…

    5
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    Mute 00100100
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    Sep 2nd 2020, 9:54 PM

    @DeWitt: SF left us the Anglo-Irish Bailout last time they were in power…. what next…

    5
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    Mute Quiet Goer
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    Sep 2nd 2020, 6:53 PM

    We all partied!

    We all know at this stage the money required can be magicked into existence so there’s no need for our overlords to be landing us with another 10 years of austerity

    77
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    Mute Derek Anderson
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    Sep 2nd 2020, 6:53 PM

    And still fighting NOT to take the 16 billion owed by Apple

    66
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    Mute nazi killer
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    Sep 2nd 2020, 6:58 PM

    @Derek Anderson: we won that fight to be fair

    50
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    Mute The Upside-down Triangle
    Favourite The Upside-down Triangle
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    Sep 2nd 2020, 7:03 PM

    @Derek Anderson: the courts said they don’t owe it.

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    Mute Derek
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    Sep 2nd 2020, 8:07 PM

    @Derek Anderson: it was never ours. You think the whole nation stocked their houses with apple products to justify Apple having to pay such a figure in Ireland alone?

    16
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    Mute Padraic Forde
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    Sep 2nd 2020, 7:37 PM

    I think a million went on golf prizes in Clifden

    54
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    Mute Paddy Ward
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    Sep 2nd 2020, 8:23 PM

    Got nothing off the government went to work everyday in my public sector job working 12 hrs shifts but I’ll get shafted for it in the budget

    54
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    Mute Ciara Ní Mhurchú
    Favourite Ciara Ní Mhurchú
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    Sep 2nd 2020, 8:35 PM

    @Paddy Ward: me too Paddy but plenty lost their jobs.

    26
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    Mute Rusty Nuts
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    Sep 2nd 2020, 8:58 PM

    @Paddy Ward: every day paddy?

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    Mute Gerrard
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    Sep 2nd 2020, 9:56 PM

    @Paddy Ward: everyday I doubt that prob 5 days a week 6 hr days loads of holidays and a huge pension and that’s shafted ha

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    Mute Ciara Ní Mhurchú
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    Sep 2nd 2020, 10:06 PM

    @Gerrard: you reckon nurses, doctors and the rest of us public sector workers work 6 hour days, get loads of holidays and massive pensions? Feel free to join us. I can’t even get a mortgage for more than 175k. Hardly earning a fortune obviously. You want more holidays, get a union sorted and ask for them.

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    Mute james foley
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    Sep 2nd 2020, 11:32 PM

    @Paddy Ward: don’t worry your tax free pay off at the end of the day will make up for it and a good pension most of us won’t have a pension

    1
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    Mute Gerry Glynn
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    Sep 3rd 2020, 1:08 AM

    @Paddy Ward: if you work 12
    Hours / day ,you work 3 Days/ week . I’m sick to the teeth of the lies
    We have to listen to .

    3
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    Mute 8-Bit-Relic
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    Sep 2nd 2020, 7:26 PM

    Wait? The lockdown and the restrictions weren’t for free?

    36
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    Mute Eddie Michael
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    Sep 2nd 2020, 7:41 PM

    Yet property prices sore back to Celtic tiger day’s….

    22
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    Mute Jack Inman
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    Sep 2nd 2020, 7:57 PM

    @Eddie Michael: that because everything is being propped up by the government.
    When that dries up and all the forced savings creating this little boom goes wait and see what happens……and that is without the inevitable no deal Brexit everyone has forgotten about
    Tick, tick, tick…..boom

    30
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    Mute Eric Vdc
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    Sep 2nd 2020, 8:07 PM

    @Eddie Michael: Big general bubble before someone comes with a pin and it all burst… if the stock is superstitious, we have 1 month left (Oct)

    11
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    Mute The Upside-down Triangle
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    Sep 2nd 2020, 6:58 PM

    Don’t fear everyone, interest rates and government bond yields are low. Free money to all!

    20
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    Mute Murr Paul
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    Sep 2nd 2020, 7:07 PM

    @The Upside-down Triangle: the money has to be paid back regardless of interest

    23
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    Mute The Upside-down Triangle
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    Sep 2nd 2020, 8:32 PM

    @Murr Paul: it will never be paid back, governments don’t pay back gov debt. They just service it.

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    Mute DeWitt
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    Sep 2nd 2020, 8:43 PM

    @The Upside-down Triangle: not true

    1
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    Mute The Upside-down Triangle
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    Sep 2nd 2020, 8:54 PM

    @DeWitt: go look at a graph for gov debt levels for any western country over the last two decades, maybe then the penny will drop with you. Paying back debt is idiotic with low interest rates when you can spend it on services and help grow the economy. All that matters to debt to GDP, you shrink the debt by growing the economy not by paying it back.

    18
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    Mute Virus-free Turkey
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    Sep 2nd 2020, 7:36 PM

    Ah! Here we go!
    I take it we now downgrade the pensions pots of Michael, Leo and those of Glynn and his band of desperados.
    Ahem… taxpayer screwed again.

    35
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    Mute Dan
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    Sep 2nd 2020, 6:57 PM

    On what exactly? Is there a detailed breakdown?

    15
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    Mute B
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    Sep 2nd 2020, 8:52 PM

    Let’s hope they actually put away that rainy day fund that they were talking about for years and actually use it this time , instead of topping up their wages every couple of months, this is exactly the time to use it to save the Economy and so we don’t all get a massive shock in the next budget

    9
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    Mute 00100100
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    Sep 2nd 2020, 10:10 PM

    @B: @
    You mean the prize monies in a pot at the other end of the rainbow?

    5
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    Mute Will
    Favourite Will
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    Sep 2nd 2020, 9:35 PM

    Sure let’s ask the EU for some lolly!!

    8
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    Mute Ciara Ní Mhurchú
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    Sep 2nd 2020, 8:34 PM

    Less than what we should have gotten from Apple.

    6
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    Mute Mark Byrne
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    Sep 2nd 2020, 8:59 PM

    @Ciara Ní Mhurchú: we?

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    Mute Ciara Ní Mhurchú
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    Sep 2nd 2020, 10:03 PM

    @Mark Byrne: yes, we. The Irish state.

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    Mute Noel McGivern
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    Sep 2nd 2020, 10:35 PM

    @Ciara Ní Mhurchú:
    Not looking like we will be getting anything:
    https://www.rte.ie/news/business/2020/0715/1153349-apple-ireland-eu/

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    Mute FlopFlipU
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    Sep 3rd 2020, 7:40 AM

    Would I be right in saying those that got the €350.00 which they needed actually hand back 23% of it when they purchase stuff and that

    5
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