National debt soared by €33billion during the pandemic to record levels – but the cost of paying off the bill has remarkably fallen as borrowing costs are so low.

The total is now close to a quarter of a trillion euro – that’s almost €250billion – which is €47,250 for every man, woman and child in the State.

The mind-boggling debt was fuelled by the Government’s essential support of the economy during the pandemic through PUP and TWSS.

Finance Minister Paschal Donohoe said yesterday: "The Government responded swiftly and forcefully to minimise the economic fall-out from the pandemic and this was the appropriate strategy.

"The economic supports we put in place saved jobs, supported households and kept businesses afloat the length and breadth of our country. Last week, the CSO published data showing a record level of employment in our country – nearly two-and-a-half million at work. The economic supports that Government put in place helped to save many of these jobs."

In Association with

Although debt is still rising, he pointed out the "interest bill" as a proportion of Government revenue is falling as the rate of interest is just 1.5%.

The debt per person is expected to have peaked last year at €47,250 and then start falling this year to €45,500 and drop to €44,200 by 2025.

The figure in 2019 before Covid arrived was €41,450. However, Mr Donohoe pointed out the cost of the crisis "contrasted sharply" with the global financial crisis and the bailout of the banks.

"Since the beginning of this pandemic, the Government’s approach has been how we support our economy while also taking measures at the right time to ensure our public finances returned to a sustainable path."

The debt to Gross National Income ratio is 106% but that is expected to fall to a more sustainable figure of less than 82% by 2025.