2011 Estimates

Scofflaw

These are the 2011 estimates of receipts and expenditure issued by the DoF. It's vital to realise that these represent what the situation would be if the Budget didn't happen - in other words, this is the forecast situation to which the Budget makes changes.

http://finance.gov.ie/documents/pressreleases/2010/bl159.pdf

In brief outline, the position next year would be - without the Budget - a deficit of €22.445bn, comprising a deficit on the current account of €13.998bn and a deficit on the capital account of €8.446bn.

cordially,
Scofflaw

Victor

Scofflaw wrote: »

a deficit on the capital account of €8.446bn.

I really dislike the language used in some of the statements related to the budget. There is a simplistic and naive over-emphasis, propagated by the DoF on balancing things in the current year, to the expense of other years.

Use of the word "deficit", implies a bad thing, when in reality it is the amount of money* invested in capital goods, which is generally a good thing.



* Strictly speaking the amount of investment less any income from the sale / disposal of capital assets, but it tends to be quite one-sided.

Pete_Cavan

Victor wrote: »

Use of the word "deficit", implies a bad thing, when in reality it is the amount of money* invested in capital goods, which is generally a good thing.

It is a bad thing when you have to borrow at an interest rate of ~9% (as we would be charged if we didnt get the IMF/EU bailout and had to go back to the bond markets) to cover the deficit.

Godge

The scary thing in all those figures is that if we do nothing the Exchequer deficit increases by 3.7 bn. We need to cut by that amount just to stay still.

All of the cuts, all of the pension levy, the pay cuts, the income levies, the social welfare cuts, getting rid of the social welfare Christmas bonus, the other taxes of the last three years and things are still getting worse year by year.

Scarab80

Godge wrote: »

The scary thing in all those figures is that if we do nothing the Exchequer deficit increases by 3.7 bn. We need to cut by that amount just to stay still.

All of the cuts, all of the pension levy, the pay cuts, the income levies, the social welfare cuts, getting rid of the social welfare Christmas bonus, the other taxes of the last three years and things are still getting worse year by year.

The main thing affecting next year is the start of the payment on the Anglo/INBS promissory notes, 3.1bn next year though I think they plan to defer starting payment for another year.

Don't understand the increases in voted expenditure in many departments though, increments and general inflation is all I can think of though you would think that this would be more than offset by reductions in staff numbers due to the continuing recruitment embargo.