Govt reaps €1.8bn more tax than expected

The Government has raked in €1.8bn more tax than expected in the first nine months of this year, it was revealed today.

And they have spent less than they expected to, according to the Department of Finance.

The latest exchequer returns show Irish taxpayers paid the state 29,659 million euro so far this year. That is €1,807m more than Government economists forecasted.

Tax revenue to the end of September was up by 12.2%, more than double the 5.3% rise predicted.

Stamp duty was up €687m, Corporation Tax up 321 million euro, Capital Taxes up €317m and VAT rose by €296m.

Finance Minister Brian Cowen said the public finances were in sound position with a deficit of 136 million euro recorded in the latest returns.

The figure for the third quarter of this year compares to €1,123m for the same period in 2005.

“Overall, tax revenue is ahead of profile, and public expenditure is within the targets set for it,” said Minister Cowen.

“These results combined with recent CSO data show that the Irish economy continues to perform well ahead of our EU partners.”

He added: “It is important that we put this economic performance to good use by building up our infrastructure, maintaining our competitiveness and ensuring a fairer distribution of society’s resources. These will be among my aims for the forthcoming budget.”

But Labour Party finance spokeswoman Joan Burton questioned whether taxpayers were getting value for money from the Government.

She said the publication last week of the Comptroller and Auditor General’s report suggested this wasn’t the case.

“The report contains many examples of failures by this Government to exert proper management over the spending of public funds to ensure the taxpayer gets adequate investment in public transport and health and value for money for the huge sums that they pay,” she said.