Exchequer reveals huge deficit

THE Exchequer deficit for the four months to the end of April reached €1.74 billion, close to the €1.8 billion target for the whole year.

The huge shortfall is symptomatic of the slow down in the economy, analysts said. It compares with a much lower figure of €112.7 million in the same period of 2002, according to Department of Finance figures issued last night.

Total Government spending rose to €10.61bn, up from €9.49bn in the first four months of last year. The real concern is that total tax revenues and other receipts fell to €8.9bn from €9.4bn over the same period last year. Chief economist of Friends First, Jim Power said the figures are not as bad as they first appear but are consistent with an economy that has slowed dramatically over the past 18 months.