Government’s budgetary response to COVID-19

Nov 30, 2020

The Minister for Finance, Paschal Donohoe TD published a report ‘Taking Stock: The Fiscal Response to Covid-19’, outlining the Government’s budgetary response to the pandemic. The taxation system has served as an effective tool in the Government’s response to the pandemic with €3.4 billion spent on tax as supports in 2020. The Minister has projected a deficit of 5.7 percent of GDP for next year, with many of the tax measures introduced expected to remain in place and projected to cost €700 million. The report details that once the crisis has passed Covid expenditures will need to be withdrawn or financed by taxation increased.

The cost of the taxation measured introduced during the pandemic are set out in the report.  Further information can be found in the Department of Finance’s press release.