Irish economy - Budget 2019 eschews caution in favour of sharp spending rises

Davy Research
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There were no surprises in today’s Budget – €1.4bn of spending rises were funded by €350m of net revenue measures. The total package is worth close to €3.5bn (1.1% of GDP), a significant stimulus to the economy in 2019. This involves a 6% increase in gross government expenditure – hardly a cautious stance as the economy faces Brexit, with spending over-running targets and funded by volatile corporation tax revenues. Nonetheless, the new targets are a small €75m deficit in 2019 and a €1bn surplus in 2020.