Ireland's budget deficits shaping up to be 'much better than once feared'

Minister for Finance Paschal Donohoe confirmed there will be no changes to income taxes in next month’s budget. Picture: Gareth Chaney

The budget deficits this year and in 2021 are shaping up to be much better than once feared, despite the twin threats of Covid-19 and a crash-out Brexit, a senior economist has said.

The comments come after Finance Minister Paschal Donohoe said that October’s budget is being prepared on the basis of a deficit next year of between €15bn and €19bn, equivalent to a deficit of between 4.5% to 5.5% of economic output, and before any further fiscal decisions are taken on budget day itself.