Tax shortfall of €3.5bn due to downturn, says finance chief

THE €3.5 billion tax shortfall in the past two years was blamed on the economic downturn by Charlie McCreevy’s top civil servant yesterday.

Department of Finance secretary general Tom Considine said the lower than expected tax revenues were due to the decline in economic growth, September 11 and the foot-and- mouth disease crisis rather than a miscalculation by his officials.

At a Public Accounts Committee hearing, Mr Considine said in 2001, only €28bn in tax was collected despite a prediction in the budget that €30.5bn would be raised. In 2002, tax receipts fell short at €29.3bn when €30.3bn was to be accumulated.