€7bn deficit: Economy in ‘death spiral’

THE economy is in a “death spiral” it was claimed after figures revealed how the hole in the public finances has widened to more than €7 billion.

The Exchequer returns for the first four months of 2009 show a deficit of €7.3bn – almost double the €3.7bn shortfall in the same period last year.

The State’s income fell by a quarter, with tax receipts down from €13.3bn to €10.1bn. Spending rose from €15.3bn to €15.6bn, mainly accounted for by a rise of 13% in social welfare spending.