Tax revenues ahead of target, exchequer returns show

Tax revenues ahead of target, exchequer returns show

Today’s exchequer returns show tax revenues ahead of target.

August’s exchequer returns suggest that there might be a little more leeway in Budget 2020, with tax revenues €120m ahead of target and spending inside expenditure plans.

However, the key issue for Budget 2020 is whether Ireland will face a ‘no-deal’ Brexit, which the Department of Finance believes could lead to a €6bn deterioration in the public finances, leading to a deficit of 1.5% of GDP in 2020.

In a statement the Department of Finance confirmed:

  • An Exchequer deficit of €625m was recorded to end-August 2019. This compares to a deficit of €1.818bn in the same period last year. The €1.193bn year-on-year improvement is driven by increases across all revenue streams; tax, non-tax and capital receipts, and somewhat offset by increases in both current and capital voted expenditure.
  • Tax revenues of €35.05bn to end-August 2019 were in-line with target, ahead by just 0.7% or €233m and exceeding the 2018 performance by 8.1% or €2.629bn.
  • Total net voted expenditure to end-August 2019, at €33.74bn, was up €2.16bn or 6.8% in year-on-year terms, comprised of a 5.2% increase in current spending and a 25.1% increase in capital spending. This was broadly in-line with profile, below by 1.1% or €365m.

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