Exchequer deficit narrows on strong tax receipts

The Exchequer deficit narrowed to €494m for the first five months of 2004, compared to a deficit of €1.239bn for the same period last year.

Strong tax returns and a tight rein on public spending helped reduce the deficit, latest figures from the Department of Finance show.

Tax revenue was €13.251bn, compared to €11.501bn during the same period in 2003. Non-tax revenue rose to €145.51m from €116.66bn.

Total expenditure rose to €14.254bn from €13.527bn, well within the Government's target of 6% growth at budget time.

Income tax receipts were up 7% or €250m to €3.84bn from €3.151bn, indicating a buoyant employment market.

Value Added Tax, which accounts for almost 33% of the total tax take, was up to €4.921bn, while Corporation tax came in at €1.170bn.