Budget surplus down €845m

The country recorded an exchequer surplus of €608m during the first quarter of the year - €845m down on the figure at this time 12 months ago.

Figures from the Department of Finance tonight showed tax inflows running at just over 20% of targets set in last December’s budget and 2.8% lower than during the opening three months of 2001.

At the same time, total current spending went up by 20.2% in comparison with the same period last year.

The department’s returns signalled a significant slowdown in the country’s ‘‘Celtic Tiger’’ economic boom times, but Finance Minister Charlie McCreevy pointed out that tax measures he introduced in the budget had still to be reflected in extra revenue, and said the rate of annual increase in spending was moderating.

He also maintained ‘‘The general expectation is that the economy is on the way to recovery and that this should be reflected in tax revenues over the remainder of the year.’’

Revenue was boosted to the tune of more than €250m that became due to the exchequer following the January 1 currency changeover from the now-defunct punt to the euro.

The latest exchequer returns were criticised by Fine Gael finance spokesman Jim Mitchell, who claimed: ‘‘Public finances are in freefall as a result of the government’s loss of control over spending.

‘‘It does not take an expert to see that this rate of spending cannot be sustained, and that the government has lost any semblance of control over the nation’s finances.’’

Labour’s finance spokesman Derek McDowell accused Mr McCreevy of ‘‘cooking the books,’’ both today and in the pre-Christmas budget statement.

:: A separate set of Dublin figures tonight indicated a rise of nearly 6% in the average price of second-hand houses in the capital during the first three months of the year.

Statistics from Sherry FitzGerald, one of the country’s top estate agents, said the recovery in the rate of property prices left them back at the level they were at the start of last year.

Marian Finnegan, the company’s chief economist, said: ‘‘After the volatility of 2001, the year ahead is showing signs of increased certainty and stability. This is good news for the economy.’’