Government’s budget deficit for 2020 revised up to €18.8bn

The Government's budget deficit for last year has been revised up - marginally – to €18.8 billion. The figure, included in government income and expenditure data from the Central Statistics Office (CSO), equated to 5 per cent of gross domestic product (GDP).

The €20 billion year-on-year deterioration reflects the impact of the Government spending on Covid-19 supports. The bulk of the additional spending went on income supports.

“Targeted government supports and public health measures resulted in a significant increase in expenditure and, at the same time, revenue fell,” the CSO said.

General government revenue was €84.5 billion in 2020 while expenditure was €103.3 billion, giving a deficit of €18.8 billion compared with a surplus of €1.1 billion in 2019, the CSO said.

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In its most recent quarterly assessment, the Central Bank has warned that the Government's budget deficit would swell to €21.5 billion this year as a result of spending on wage supports and other pandemic measures. It also said the deficit and debt ratios would peak this year.