Exchequer returns for Ireland, October 2009

I plagiarised the chart below from Constantin Gurdgievs blog (which is brilliant btw) be sure to check it out.

What we can see is a widening of the deficit which is partly cyclical but also due to our spending habits versus our income, that is sometimes referred to as the ‘structural deficit‘ or a ‘public service deficit’,  that shouldn’t be used as a stick against the public sector by default because it isn’t only arising from there, although public sector wage levels must be addressed because the costs in our public sector are heavily embedded and that presents a massive problem for making any adjustment given the percentage of spending that wages represent. Our property boom lead to a surplus which was rapidly spent, and ultimately it disguised a significant fiscal gap which we see emerging in the chart above.

The person who has given the most poignant thoughts on that matter lately in Ireland is (imo) Read More