Market comment - Ireland’s budget deficit will be well inside official forecast

Davy Research
/Read Important Disclosures

Yesterday’s exchequer returns provided good news on the public finances. The central government deficit of €14bn in the first 11 months suggested the final general government deficit for 2020 will be well inside the €21.6bn (6.2% of GDP) forecast in October’s Budget. November’s data showed tax receipts again relatively resilient during the second lockdown and the cost of income supports within expectations. Also, corporation tax receipts bounced back after October’s unexpected weak figures.