Following the publication of the Exchequer Returns for September, Chambers Ireland Friday (2 October) calls on Government to maintain supports for the badly impacted areas of our economy. Ensuring that we maintain supports will be essential if parts of the economy are to survive the pandemic. Budget 2021 must also minimise longer-term detrimental economic impact through prioritising funding for capital infrastructure and our town centres.
Speaking Friday evening, Chambers Ireland Chief Executive, Ian Talbot said, “The extent of the deficit is not a surprise, given the broad effects of the pandemic related restrictions on the economy, and the need for necessary additional spending on the health service.
The figures highlight the widening gap between the Multinational sector and the real domestic economy. This emphasises the need for the state to take a counter-cyclical approach to the 2021 budget cycle.
Many things are uncertain, but we know the economy has suffered a shock unlike anything in our lifetime and there is a growing concern that the long-term unemployment may permanently scar the careers of the younger generation. Unlike past recessions this generation will not have the option of emigrating in search of work. This suggests that unemployment will decline slowly after Covid-19 and so Government needs to ensure its impact is minimised.
Today’s Exchequer return figures emphasise the need for government to act boldly and accelerate expenditure on capital infrastructure to ensure that the economic disruption is minimised.
Hugely important to this is the government prioritising, and appropriately funding, the Town Centre First strategy from its programme for government.”