Spending boom ‘startles’ finance chiefs

THE red hot property market and spending on luxury goods powered the Irish economy forward last year at a rate Finance Department chiefs admitted left them “startled”.

The expected exchequer deficit for 2005 of nearly €3 billion was slashed to €499 million as consumers splashed out wildly.

Tax receipts soared €1.75bn above estimates. The housing boom was largely responsible, with stamp duty and capital taxes accounting for 60% of the surplus.