The Department of Finance on Saturday confirmed that the 2011 budget deficit
will fall to 12.2% of gross domestic product (GDP), before Budget Day
adjustments, from 32% in 2010 - - a record for the Eurozone and partly related
to funding of Anglo Irish Bank. Meanwhile, the costs of running the Houses of
the Oireachtas, have increased by 33% compared with 2004.
The deficit total
will dip from €50.3bn this year to €22bn in 2011 according to the
pre-Budget White Paper on
Tax receipts are forecast at €31.5bn for 2010, €475m above
target and the figures are based on this week's end-November
Tax revenues are forecast at €33.1bn in 2011; other revenues (Central Bank
surplus and income from State bank guarantees) are expected to be €1.9bn; and
after expenditures, the shortfall is €22.4bn before the already announced fiscal
adjustments totalling €6bn, which will be detailed on Budget Day, on Tuesday.
Interest on national debt will amount to €4.8bn this year and will rise to
€5.1bn in 2011.
The White Paper says that the 1% of gross national product (GNP) that
is due to be paid into the National Pensions Reserve Fund for 2011 doesn't have
to be paid because the State had assumed in 2009 and 2010 the assets and
liabilities of the pension schemes of the 5 older universities and 'certain
non-market public corporations' including FÁS. The paper
notes that these funds have assets of about €2bn.
Strangely, there is no mention of
the confirmation in September last by the Minister for Finance Brian Lenihan that
the university funds were in deficit amounting to about €630m led by Trinity
College at €315m.
The cost of running the Oireachtas
is expected to be €113m in 2011 compared with €123m
in 2008 and 2009 and €85m in 2004.
Finfacts Budget 2011 Page