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Why has the €20 Billion deficit not reduced ?.

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Comments

  • #182
    later12
    Closed Accounts Posts: 11,298 ✭✭✭✭later12


    Voted expenditure is the annual allocation to/by departments via the Dail, non-voted expenditure is expenditure that arises from legislation. So yes, issue of promissory notes for recapitalisation is 'non-voted' expenditure, although the name is a bit of a misnomer.

    Here is how non voted expenditure broke down under current and capital headlines.

    2e5nthz.png

    30u63xd.png

    'End July Exchequer Statement'. Department of Finance
    http://www.finance.gov.ie/viewdoc.asp?DocID=6948


  • #183
    Nijmegen
    Registered Users, Registered Users 2 Posts: 3,086 ✭✭✭Nijmegen


    As far as I'm aware the deficit on current spending is around €10bn (not €5bn), but saying 'That other debt doesn't count' - as the department of finance is saying - is complete bull. We might as well ignore the social welfare bill and hey presto, no deficit...

    They've also been performing other accounting tricks to pull the interest repayments off the books.

    The exchequer account is only half the story of public spending.

    Would it surprise you to know that, in actual fact, the government - when all is said and done - will spend around €68.1bn this year? In 2009 it was €56 billion.

    Accountants are clever, but when you owe someone, you owe them, no tricks.

    Gross+Expenditure%5B1%5D.png

    Voted+and+Non-Voted+Gross+Expenditure%5B1%5D.png


  • #184
    later12
    Closed Accounts Posts: 11,298 ✭✭✭✭later12


    The €68bn expenditure figure really isn't going to change over the coming years, that was always known. The critical issue is not a naked exchequer figure, unrelated to tax receipts, transfers, or other forms of income, the issue is (i) the size of the deficit and (2) how the deficit shall be shortened.

    Furthermore, the Government are quite right to point out, for demonstrative purposes, how the deficit has shortened once extraordinary, non routine payments are lifted away. Having said that, they clearly publish the broader figures, including recapitalisation funds, for all to see on their website.


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