Written answers
Thursday, 17 October 2013
Department of Finance
Government Deficit
Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source
71. To ask the Minister for Finance if he will provide, for the most recent five years for which data is available, the interest on Government borrowing as a proportion of GDP. [43988/13]
Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source
The following table shows general government interest as a proportion of GDP each year since 2009 (including the projected amount for the current year and 2014).
| Interest as proportion of GDP | - | - | - | - | - | - |
|---|---|---|---|---|---|---|
| - | 2009 | 2010 | 2011 | 2012 | 2013f | 2014f |
| General government Interest (€ millions) | 3,295 | 4,974 | 5,325 | 6,135 | 7,645 | 8,190 |
| GDP (at current market prices) | 162,284 | 158,097 | 162,600 | 163,938 | 165,876 | 170,611 |
| Interest as % GDP | 2.0% | 3.1% | 3.3% | 3.7% | 4.6% | 4.8% |
Source: CSO, Department of Finance
The interest figure shown is the consolidated general government interest figure and reflects interest on a range of debt instruments including Government bonds and EU/IMF programme loans.
General government debt (GGD) is a measure of the total gross consolidated debt of the State and includes National debt, as well as the debt of central and local Government bodies.
GGD has increased substantially in recent years as a result of borrowing to fund a series of budget deficits and the support provided to the financial sector. It is expected to peak at approximately €205.9bn (124.1% GDP) in 2013.
The 0.9 percentage point of GDP increase in 2013 over 2012 reflects, in part, the first interest payments on the floating rates bonds which were issued in February 2013 to replace the IBRC Promissory Notes but also the fact that there was an interest holiday on the Promissory Notes in 2011 and 2012.
No comments