National Debt Set To Double ????

Het-Field

http://www.independent.ie/national-news/national-debt-set-to-double-to-8364150bn-latest-figures-reveal-2017465.html


I know it is the Sindo. In spite of that, they have been acting as FF and Bertie cheerleaders for some time now, and this would be a further indictment of the current administrations ability to control the crisis.

Filan

What does this mean for the future of the country?

Sand

It means 20% of all taxes goes to servicing that debt by 2015. At least. Which means only 80% of taxes raised can be spent on services and or/actually reducing the debt over time.

Which means Lenihan was delerious when he said the worst was over.

Filan

So what does this mean for day to day life? Long term depressed property? Further Pay cuts for everyone including welfare recipients?

SLUSK

If I am not mistaken NAMA is not included in the cost for the national debt. So the real numbers could even be higher.

thebman

We knew this months ago though :-/

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Sand wrote: »

It means 20% of all taxes goes to servicing that debt by 2015. At least. Which means only 80% of taxes raised can be spent on services and or/actually reducing the debt over time.

Which means we can try to:
a) keep public expenditure in each department at its current level in which case taxes will go way up due to the increased cost of servicing the increased debt, or,
b) keep overall public expenditure at its current level in which case each department will face big cuts in their budgets with resulting decreases in the services they provide, or,
c) keep everyone happy in which case we'll end up with most of the worst aspects of a) and b)

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SLUSK wrote: »

If I am not mistaken NAMA is not included in the cost for the national debt. So the real numbers could even be higher.

I believe that is correct. That means our "National Debt" figure isn't effected by it.

However, NAMA will have interest on its borrowings to pay. It'll also have some income from its property portfolio. The shortfall in NAMA's budget between the cost of interest and their property income will either have to be borrowed by NAMA (unlikely) or will have to be paid out of the budget every year until such time in the distant future that NAMA can be wound up.

SLUSK

SLUSK wrote: »

If I am not mistaken NAMA is not included in the cost for the national debt. So the real numbers could even be higher.

Bank recapitalisations arent included either, the real numbers are higher.