A fifth of all taxes used to service interest on national debt – Doherty
Responding to the quarterly exchequer figures released today Sinn Féin Finance Spokesperson Pearse Doherty has said that these figures highlight the unsustainability of Ireland’s level of debt.
“While today’s figures are broadly in line with Government expectations they never the less show the unsustainability of Ireland’s debt.
“Today’s figures reveal that one out of every €5 collected on taxes in this state is used to pay the interest on Ireland’s growing debt.
“Of the €15 billion collected by the state across the range of taxes, over €3 billion was used to pay the interest in Ireland’s national debt. It is clearly unsustainable that one out of every €5 collected would be used to service the interest on our national debt. This ratio is likely to rise in the coming years given that just over a third of the money available from the EU/IMF programme has been drawn down so far.
“While the Government will welcome today’s figures claiming that they are broadly in line with the department’s projection, there is nothing to be welcomed in the fact that a fifth of all taxes collected in the state is now being used to service the interest on our national debt.
“The Government’s failed banking policy is also evident in these figures. Despite the €6 billion package of expenditure reduction and tax increases in last year’s budget, our deficit has now grown by a further €2 billion compared to this time in 2010 as a result of this Government’s injection of €3 billion into Anglo Irish and Irish Nationwide banks.”