merrion street

The Minister for Finance, Michael Noonan T.D., today welcomes figures published by the CSO which show continued improvements in the budget deficit and level of national debt. In 2016, the headline deficit was 0.5% of GDP (underlying deficit of 0.7%) and the debt to GDP ratio was 75.4%.
Speaking about the figures today the Minister for Finance Michael Noonan T.D. said:
“We will have close to a balanced budget in nominal terms in 2017 and will achieve the Medium Term Budgetary Objective of a balanced budget in structural terms by 2018.”
“Our debt to GDP level now stands at 75% and is down from a peak of 120%. Our target under the EU rules is 60% but we intend going to 45% by the mid-2020s because GDP is so volatile in Ireland. It is prudent for Ireland to target 45% as an appropriate level for our national debt relative to our GDP level because GDP overstates the level of activity in Ireland. We are a small and very open economy, we need some additional borrowing headroom in the event of another international downturn.”