Property market driving ongoing health of public finances

The ongoing strength of the property market has seen the State's public finances continue to surge ahead of all expectations, according to Exchequer figures published yesterday.

The figures show that the tax take during the month of October alone was almost €200m more than predicted, while revenue for the year so far is €3.6bn higher than the same period in 2005.

Economists say the increase is mainly due to the ongoing strength of the housing market, with stamp duties and capital gains taxes increasing at a higher rate than other categories.

Ulster Bank's chief economist, Pat McArdle, is predicting that the health of the finances could see the State enjoying its biggest budget surplus in five years by the end of 2006.

Labour Party TD Joan Burton, meanwhile, is questioning why the money is not being spent to fix long-running problems in the health service and elsewhere.