Budget adjustment to be 'less than €2bn' after tax take rises

The Finance Minister Michael Noonan has said the Budget adjustment will be "somewhat less than the €2bn" originally planned.

Michael Noonan's comments come as the Exchequer figures for July show the tax take is up on last year and ahead of target.

The deficit stands at just over €5.1bn, which is almost €800m better than projected last Budget day.

Since the start of the year, more than €22.3bn in tax has been generated for the Exchequer.

The figure is 6.4%, or more than €1.3bn, up on the same period last year and 2.5%, or over half a billion euro, ahead of target.

Tax take in July alone was 9% or just over €300m above the monthly target.

The returns show there were increases in income tax, VAT, Excise duties and Coporation Tax.

Overspending in the Department of Health is being offset by underspends in other departments.

The Finance Minister says the latest Exchequer figures are further evidence that the recovery is taking hold across the economy.

He said if this pattern continues in the second half of the year, the Budget spending cuts and tax hikes in October will be somewhat less than the €2bn originally planned.

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