Revenue returns exceed forecasts
An Exchequer deficit of €594m was recorded for the first six months of the year, the Government revealed tonight.
With better-than-expected tax receipts in VAT and excise duty, Revenue returns reached €17,520m, well ahead of Government estimates of €16,919m.
Finance Minister Brian Cowen said the figures showed the economy was continuing to perform well.
“The results to the end of the second quarter indicate that the public finances remain on course,” he said.
“Tax revenues are 2% – €320m – ahead of profile so far. Apart from costs arising in relation to the refund of nursing home charges, public expenditure in 2005 is expected to be in line with estimates.
“Sound public finances are the basis for sustainable growth. I intend to stick to that prescription.”
Overall there was an Exchequer deficit of €594m for the last six months, compared to a surplus of €130m for the first half of 2004 and a budgeted deficit of €2,988m for 2005 as a whole.
The Department of Finance stated tax revenue, at €17,239m is €320m ahead of profile with better-than-anticipated performance from VAT and Excise accounting for €174m and €118m respectively of the excess.
Year-on-year tax receipts were up 4.2% compared to the profiled increase of 2.2% to the end June 2005.
