New figures from the Central Statistics Office show that Government expenditure in the first half of the year was up significantly, reflecting the supports put in place in response to the Covid-19 pandemic.
The CSO said a deficit of €10.2 billion - or 5.8% of quarterly GDP - was recorded in the first half of 2020.
With increased levels of borrowing needed to support the fiscal impact and response to Covid-19, gross general government debt exceeded the peak of €218 billion in third quarter of 2013 to reach a new record high of €226 billion in the second quarter of this year.
The CSO said that at the end of 2019, the debt to GDP ratio of 57.4% was below the Stability and Growth Pact limit of 60%.
But since then, the level of debt has increased by €22 billion with the ratio at 62.7% of GDP at the end of the second quarter.
Expenditure in the first half of the year was up significantly to €48.5 billion due to the Temporary Wage Subsidy Scheme (TWSS), the Pandemic Unemployment Payment (PUP), increased spending in the health sector and the introduction of grants for business.
Meanwhile, government revenue of €38.3 billion was 6.7% lower than the first half of last year.
The CSO said that indirect taxes were down 23.5%, mainly due to reduced VAT receipts, while direct taxes (including corporation tax and income tax) were up 8.7%.
