Ireland’s Department of Finance Reports Public Debt Per Capita Reaches €42,000

Dublin: Ireland’s per capita public debt, as revealed by Finance Minister Michael McGrath, stands at 42,000 euros, reflecting a slight reduction but still deemed substantial for a nation of Ireland’s size. This places Ireland among the countries with the highest per capita public debt globally, alongside Japan, Belgium, and Italy. The nation’s total debt is reported at 223 billion euros.

Recent government figures indicate that public debt accounts for 76 percent of Ireland’s total national income, marking a notable decrease from 166 percent in 2012. By the end of last year, the country’s total debt had decreased from 236 billion euros to 223 billion euros.

Minister McGrath underscored the significance of this debt burden on Ireland’s small and open economy, acknowledging that while the current level of public debt is manageable, it cannot be disregarded.

To mitigate such risks, the government has introduced initiatives like the Future Ireland Fund and the Infrastructure, Climate, and Nature Fund, unveiled as part of Budget 2024. The Future Ireland Fund aims to secure the nation’s future operational expenses, with an investment target of €100 billion between 2024 and 2035, equivalent to 0.8 percent of GDP annually. Meanwhile, the Infrastructure, Climate, and Nature Fund will allocate €2 billion over the next seven years.

Minister McGrath emphasised that these measures highlight the government’s commitment to fiscal discipline and safeguarding the economy’s strengths and weaknesses.

However, John McCarthy, Chief Economist at the Department of Finance, cautioned against the economy’s heavy reliance on corporation tax, noting that 10 corporations contribute 60 percent of the country’s total revenue. Windfall gains from these corporations accounted for half of last year’s 23.8 billion euros in corporation tax revenue. McCarthy warned that if such revenue were to diminish in the future, it could significantly impact public debt, potentially increasing it by 15 percent by 2035.

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