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‘July Stimulus’ Policy Initiative: Overview of economic support measures
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This document provides the context, both economic and fiscal, in which the ‘July Stimulus’ package has been introduced. It outlines the package of tax and expenditure measures and sets out the impact the package will have on the fiscal deficit this year. At some €30 billion, or around 10 per cent of GDP, the deficit reflects the extraordinary level of support provided in response to the Covid crisis. The scale and scope of the measures taken in Ireland are in line with those in other European countries.
The July Stimulus is a key part of the second phase – the recovery phase — of the Government’s response to the pandemic. Counter-cyclical fiscal policy is the appropriate tool by which to ‘kick start’ economic growth.
