Exchequer has 'plenty of room' for more Covid-19 spending if fallout worsens  

Under calculations prepared for the EU, the Government's budget deficit will likely be €19bn in 2020, or 5.5% of GDP, much lower than in many other parts of Europe. 

Minister for Public Expenditure and Reform Michael McGrath said further support for business is available. File Picture 

Government finances are in good shape with ample room for further spending on supports for businesses and to keep people in jobs, if the Covid-19 economic fallout worsens in the coming weeks, the final exchequer returns for 2020 suggest. 

The December returns of tax revenue and spending showed a lower than expected exchequer deficit of €12.3bn last year despite the huge sums entailed in fighting the pandemic and keeping the economy from crashing into mass unemployment.