Tax revenues running nearly a billion euro more than expected

The coalition has been given a massive pre-budget boost with tax revenues running nearly a billion euro more than expected. euros Latest exchequer returns are another signal that Michael Noonan and Brendan Howlin will be able to ease up on the austerity on October 14th. But in a statement this evening the Finance Minister says he’ll get the deficit below the 3 per cent target next year, meaning he’s going to impose a slightly harsher budget than necessary. In what will be the second last exchequer returns before the budget, the news could hardly be better for the coalition. When the figures were totted up on Sunday the tax take was a whopping 971 million more than expected and we’re only two thirds of the way through the year. During August delayed stamp duty and some non-recurring corporation tax payments have boosted what was already a good performance for the exchequer, with income tax also showing more and more people getting work. VAT accounts for more than a quarter of the extra cash – a sure sign that consumers are spending again, while stamp duty is also way ahead of schedule – as people buy up whatever homes are available. Expenditure is also pretty much under control – just 115 million more than planned – though Health continues to be a problem having overshot its budget by 353 million. One clear picture from these figures, and other good economic indicators – the budget will not need to be anything near the planned correction of two billion euro.

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