Booming property market keeps Celtic Tiger roaring
Ireland’s still-booming property market is continuing to fuel the Celtic Tiger economy, exchequer figures showed today.
Stamp duty and capital gains tax accounted for more than half of the total €45.5bn in tax revenue during 2006, Department of Finance officials said.
Economic forecasts contained in last year’s budget fell short of the overall exchequer figures published tonight.
Department official Barra Ó Murchadha told a media briefing: “We expected a slow-down in the property market but it continued to boom.”
“We’re now talking about economic growth of about 6% in 2006, compared to forecasts of between 4.5% and 5%.”
Defending the shortfall in the forecasts, he added: “Our job is to make predictions. That is what we do, and they are published with the budget more than a year in advance.”
The Department of Finance said that an expanding labour market due to increased immigration would also continue to boost economic activity.
Up to €10bn from the remaining two thirds of SSIAs will also mature in April and May and could boost consumer spending.
The 2006 figures show an overall exchequer surplus of €2.265bn for the year, compared to an exchequer deficit of €499m in 2005.
Minister for Finance Brian Cowen claimed the nation’s debt now represents less than 25% of national income, compared to nearly 120% 20 years ago.
“These results confirm the prudent and far-sighted approach being taken by the Government to planning the nation’s finances,” a statement said .
Mr Cowen added that unparalleled economic growth since 1997 had helped improve public services and infrastructure, eased the tax burden and provided for future pensions.
“We are now able to provide for exchequer expenditure on Government services in 2007 in the region of €56bn,” he said.
