Exchequer deficit €267m up on forecast

The 2013 budget deficit was €11.5bn — an improvement of €3.4bn on 2012 — though the gap between revenue and expenditure was higher than projected.

“The overall exchequer deficit was €267m higher than the figure of €11,230m forecast in the Irish Stability Programme Update published in April and it was €197m higher than the projected out-turn for 2013 of €11,300m included in the Budget 2014 document on Oct 15 last,” said Merrion Stockbroker economist Alan McQuaid.

“The weaker than expected out-turn in the main reflects lower than anticipated tax receipts but the savings on the expenditure side is a welcome development, and a sign that the Government is not going to spend money just for the sake of it.”

The overall tax take was €37.8bn for the 12 months to the end of December, which was up €1.16bn year -on-year, but €144m below profile. Corporate tax was 3.3% ahead of profile at €4.27bn for the year, while property tax receipts were 27% ahead of profile at €318m. Income tax was a marginal 0.6% below profile at €15.76bn while Vat was 2.1% below at €10.34bn.

Non-tax revenue for the year was €2.67bn, which was €143m below the 2012 figure, mainly on the removal of bank fees for the Eligible Liabilities Guarantee scheme.

Capital receipts for the year of €4.2bn was boosted by the Government’s sale of its stake in Bank of Ireland and Irish Life for €1.3bn.

Net voted expenditure of €43bn was down 4.2% year-on-year and €321m below profile, while spending was below profile across all the major departments, apart from health, which was 1.4% above profile.

The Government remains on schedule to exceed the 7.5% fiscal deficit target agreed with the Troika for 2013.

Finance Minister Michael Noonan said: “Overall, the exchequer returns show that the tax base continues to grow in line with targets.”