Murrays Blog
14 Oct 2020 Budget 2021:  Unprecedented borrowing in an unprecedented crisis »

Budget 2021: Unprecedented borrowing in an unprecedented crisis

There were big numbers, sombre forecasts and a now mandatory bit of Seamus Heaney as the new Coalition Government yesterday (October 13th) announced the largest spending increase in the history of the State. “If we winter this out, we can summer anywhere”, said Paschal Donohoe, quoting Heaney. But the extraordinary level of borrowing to fund huge current spending will take the edge off the winter. The danger is that if the impact of the pandemic continues after 2021, into 2022 and beyond, the “new normal” level of public spending could become unsustainable as an economically ravaged country considers...

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