Budget Deficit in Ireland (republic)

At the end of 2006, the Irish national debt was €36 billions.

The cumulative budget deficit between 2008 and 2014 will be about €110 billions.

Do a 5% interest calculation on that and it is €5.5 billion interest payments per year.

The total tax take in 2010 is likely to be about €31 billions. Public sector pay and pensions was €20 billion and has fallen by 7% approximately.

I will await the outturn and social welfare will run to near €20 billions.

So we are still in trouble – big trouble. We have to grow the economy fast to increase taxes and close the deficit. That is why the jobs policy of Fine Gael and Labour is worthwhile. John Maynard Keynes may have departed the earth but his New Deal legacy should live on.

We may have to deal with out creditors in a trading manner or leave the Euro. Time will tell but we are in a narrow straight jacket economically.