Market comment - Budget 2022 extends support for Irish economy

Davy Research
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Yesterday’s Budget for 2022 showed that political pressures to spend the unexpected strong performance of tax revenues in 2021 have been resisted. Hence, the deficit is expected to be €13bn (5.9% of GNI*) in 2021, falling to €8.3bn (3.4% of GNI*) in 2022. Nonetheless, spending is still targeted to rise by 5.5% next year to deliver ambitious plans for health, housing and infrastructure. Support for the economy is being maintained, income taxes cut, welfare payments increased and the wage subsidy scheme extended.