The Government has confirmed that the budget deficit this year will be 32% of economic output, the highest in the euro zone, as a result of recapitalising the banks.
In a pre-Budget White Paper, the Department of Finance said the deficit would be 12% next year. But this year's tax take will be slightly ahead of expectations.
The White Paper is usually the last piece of the jigsaw before the Government finalises the Budget.
It shows that the Government expects to have collected taxes of €31.5 billion of taxes by the end of the year, marginally ahead of expectations.
The State will have a deficit of €18.7 billion for the year. That gap between spending and revenue has led to a deficit of 32% of gross domestic product (GDP).
Paying the interest on national debt will cost €4.8 billion this year but will cost €5.1 billion next year.
We know the Government plans to raise €6 billion through tax and spending measures in the Budget on Tuesday. But it will be the fine detail of changes to tax and social welfare which will determine how much people will have in their pockets.
