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Question from a novice

  • 14-06-2012 05:07PM
    #1
    briankirby
    Registered Users, Registered Users 2 Posts: 148 ✭✭


    Ok so,
    Could we still pay our public servants/social welfare if we were to default,by making massive cuts and tax hikes?
    I believe we have a deficit of 15 billion a year at the minute(excluding bank debt).

    Surely,if we dont pay back the loans all we need to do is make our income and expenditure match up ?

    Sorry,im clueless when it comes to this stuff.
    Cheers


Comments

  • #2
    ParkRunner
    Registered Users, Registered Users 2 Posts: 3,200 ✭✭✭ParkRunner


    We could pay all our public servants and social welfare payments, we just wouldn't be able to spend money on anything else so no, it would result in massive unemployment and public disorder IMO.


  • #3
    briankirby
    Registered Users, Registered Users 2 Posts: 148 ✭✭briankirby


    And may i ask to spend on what?
    New hospitals,more guards,imports?
    Surely,the cost of this would be a fraction of the bank bailouts demanded by germany?

    If we became more self sufficent this would help greatly also.
    What do u think?


  • #4
    ParkRunner
    Registered Users, Registered Users 2 Posts: 3,200 ✭✭✭ParkRunner


    Captial Expenditure for a start. Check out the exchequer statements first before making a proper thread out of this
    http://www.finance.gov.ie/viewdoc.asp?DocID=-1&CatID=5&UserLang=EN&m=19


  • #5
    antoobrien
    Registered Users, Registered Users 2 Posts: 6,106 ✭✭✭antoobrien


    briankirby wrote: »
    And may i ask to spend on what?

    Medicines, supplies, light & heat etc - you know all the things required for people to do their jobs.
    briankirby wrote: »
    Surely,the cost of this would be a fraction of the bank bailouts demanded by germany?

    The total exchequer funding of the bank bailout is less than the budget of the Department of Social protection (approx €20bn including PRSI - which is paid directly to the department, so doesn't appear in the receipts). Take a read of the No bailout money has gone into the banks if you're interested in seeing where the money is coming from.


  • #6
    mike65
    Closed Accounts Posts: 88,968 ✭✭✭✭mike65


    briankirby wrote: »
    Ok so,
    Could we still pay our public servants/social welfare if we were to default,by making massive cuts and tax hikes?
    I believe we have a deficit of 15 billion a year at the minute(excluding bank debt).

    Surely,if we dont pay back the loans all we need to do is make our income and expenditure match up ?

    Sorry,im clueless when it comes to this stuff.
    Cheers

    You make it sound so easy!

    Here are the big department numbers


    Dept of Social Protection €20.5 bn
    Dept of Health €13.6 bn
    Dept of education €8.6 bn
    Dept of Justice €2.2 bn
    Dept of Ag €1.1 bn
    Dept of Defence €0.85 bn
    Dept of Transport, Tourism & Sport €0.7 bn
    Dept of Foreign Affairs & Trade €0.7 bn
    Dept of Environment €0.45 bn

    the rest all clock in around 0.15-0.3 bn each

    Total €52 bn


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  • #7
    [Deleted User]
    Posts: 5,249 ✭✭✭ [Deleted User]


    briankirby wrote: »
    Ok so,
    Could we still pay our public servants/social welfare if we were to default,by making massive cuts and tax hikes?
    I believe we have a deficit of 15 billion a year at the minute(excluding bank debt).

    Surely,if we dont pay back the loans all we need to do is make our income and expenditure match up ?

    Sorry,im clueless when it comes to this stuff.
    Cheers
    We essentially roll over our debt rather than pay it back. Defaulting in our case would be not rolling it over.

    If you are suggesting massive cuts and tax hikes anyways why not continue to roll over our debts?


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