One word that encapsulates Budget 2021 is COVID-19. John Lowe of Money Doctors reports.
Paschal Donohoe, Minister for Finance and Michael McGrath, Minister for Public Expenditure & Reform delivered the Budget speech at 1pm on Tuesday 13th October 2020.
The Budget 2021 was essentially all about one thing: the impact of COVID-19 and remedies to ease the effect it has had on our citizens and economy rather than the effects of a disorderly Brexit. Budget 2021 delivered by Minister of Finance Paschal Donohoe announcing a €9 billion social welfare package together with Minister for Public Expenditure and Reform Michael McGrath’s measures addressed many of those concerns, but sadly not all.
Propping up the economy, not growing it, is one viewpoint of Budget 2021 – putting money in your pocket and keeping it there, as one Minister stated.
The overall budget package was in the region of €17.75 billion – a Budget deficit of €21.5billion or 6.2% of Gross Domestic Product (GDP), with €14.5bn of that already pre-committed to spending arising from Covid-19 supports and other policy decisions taken in previous years. It was the largest budget package in the history of the state.
At the beginning of this month, Ireland recorded an exchequer deficit of almost €9.4 billion in the year to the end of September. The total revealed by the Department of Finance compares with a €38 million surplus in the same period last year. “A very very big deficit. It will be run over the next two