Exchequer surplus saves €1.1bn

THE Exchequer may end up borrowing €1.1 billion less than expected this year, the Department of Finance said last night.

The department had forecast that it would need to borrow €2.8bn to fund its spending this year, but new figures show an income tax revenue surge and windfall payments from the crackdown in bogus offshore accounts meant it may only have to borrow €1.7bn.

Aside from the "hot money" that boosted the first half Exchequer returns, there has been consistent rises in income tax revenues, which are €600 million ahead of forecast.