Report of the Local Government Efficiency Review Group

2.1 National Public Finances
2. Budgetary Situation
2.1.1 The State is borrowing around one third of its day-to-day spending.
This is unsustainable. A series of measures has been undertaken at
national level to restore the public finances in the past 2 years,
including expenditure reductions across a range of public service
areas, particularly through Budget 2009 announced in October 2008,
the supplementary Budget of April 2009, and Budget 2010
announced in December 2009. Other measures have been
undertaken to reduce expenditure in specific areas, including
initiatives undertaken on the foot of the Report of the Special Group
on Public Service Numbers and Expenditure Programmes.
2.1.2 Nevertheless, Government current spending remains much higher
than available revenues. Budget 2010 published in December 2009
estimates that Government gross current expenditure in 2010 will be
just under €62 billion. Government current receipts are expected to
be just over €48 billion. Ireland continues to borrow heavily and the
General Government deficit is estimated at over 11% of GDP for
2010, well above the 3% Eurozone limit below which the Government
is committed to returning to by 2014.
Table 2.1 – Projected Gross Government Finances 2010
€ billion % of GDP % of GNP
Current Spending*
61.9 38.4 47.9
Current Receipts°
48.2 29.9 37.3
Current Deficit -13.7 -8.5 -10.6
Capital Spending
7.3 4.5 5.6
Capital Receipts & Resources
2.2 1.4 1.7
Capital Deficit -5.1 -3.1 -3.9
Exchequer Deficit -18.8 -11.7 -14.5
General Government Deficit -18.7 -11.6 -14.5
* Of which Debt Servicing costs are an estimated €5.2 billion
° The vast majority of current receipts are Exchequer tax receipts and Departmental receipts such as
PRSI, health levies etc.
Source: Budget 2010 (Note: rounding may affect totals)
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