Budget deficit may hit record 23% high

THE Government budget deficit could reach a record-breaking high of 23% this year as a result of public money being pumped into Anglo Irish Bank and Irish Nationwide.

This additional €20.6 billion would double the forecast deficit, making it almost as high as the US government’s wartime deficit of 26.5% of GDP in 1942.

Labour Finance spokeswoman Joan Burton said she believed there was a 50/50 chance of the money being added to the deficit.