Overall tax revenues climb but Vat gains modest

Government tax revenues continued to rise in July, providing Finance Minister Michael Noonan with more good news as the Department of Finance works intensively on preparations over the summer for the October budget.

However, a modest increase in Vat receipts may give the Government cause to think about the strength of the domestic economy.

Analysts have long estimated that the Government could have up to €2.5bn in its coffers for pre-election give-aways, but a complex set of EU fiscal rules limits the amount any government can spend. Mr Noonan has said that the Government will stay within the rules, with an expansionary budget of €1.2bn to €1.5bn.