After coming in at about 2% of GDP in 2019/20, the budget deficit will soon explode to close to the size seen in the great financial crisis. The government’s measures to combat the economic fallout of the coronavirus at the same time as revenues are hit by a huge contraction in economic output is a double whammy for the public finances that will push the deficit up from 2% of GDP to at least 8% of GDP and probably higher.
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