Exchequer reveals better than expected returns

The Government is welcoming a better-than-planned performance by VAT and income tax in the first three months of the year.

However, there is concern over half a billion euro in expenditure by Government departments, especially in Health and Social Protection.

At the end of March tax revenues were more than €800m better than planned for on Budget day.

Up to €250m of this is because of delayed payments in Corporation Tax from last year, and some of it is also accounted for in the way income tax is calculated.

But excluding these, taxes are still €351m ahead of target.

VAT has also outperformed expectations, even after the 2% hike came into effect, as receipts were €101m better than expected.

Overall the Exchequer deficit was €2.8bn lower than this time last year, because the Anglo Promissory Note was not paid in cash last Saturday as planned.

With regards to the excess expenditure by the departments of Health and Social Protection, they have been warned that they will be closely monitored in the months ahead.