More tax and less spending equals stagnation

The latest exchequer returns show that Ireland’s fiscal adjustment continues apace.

In the first six months of the year, the country borrowed €6.6bn, which means that so far this year, we have spent more than a billion more than we have taken in revenues every month. However, this is €2.9bn less than we had to borrow in the equivalent period last year.

The returns also show that those of us who engage in productive economic activity are paying more and more in tax. The Revenue collected €17.6bn in the first six months, €585m or 3.4% ahead of the same period last year.