July Exchequer returns confirm that COVID-19 continues to have a major impact on Irish economy

Aug 10, 2020

According to the latest Exchequer figures published by the Department of Finance, a deficit of €7,405 million was recorded to end-July 2020, in comparison to a surplus of €896 million to end-July 2019.

In a recent press statement, Minister for Finance Paschal Donohoe, T.D. has stated that

“this extraordinary increase in public expenditure is a result of the Government’s commitment to supporting our health service and the wider economy through this unprecedented period, as demonstrated with the recent announcement of the July stimulus plan to support businesses and get people back to work”.

The top five key takeaways from the Fiscal Monitor July 2020 report are as follows:

  1. The rise in expenditure reflects increased departmental drawdown in response to the COVID-19 pandemic, particularly in the areas of Health and Social Protection
  2. Tax revenues for the month of July 2020 were down by €983 million or 18.6 per cent as compared to July 2019.
  3. Cumulative tax revenue to end-July is down by 2.5 per cent.
  4. Receipts to date have benefitted from a strong performance in January and February as well as solid corporate tax receipts.
  5. A sharp decline in personal consumption has led to decline on VAT and excise receipts.