Cowen set for €1.6bn Budget bonus in tax windfall

NEW Finance Minister Brian Cowen will have an unexpected €1.6 billion bonanza at his disposal when he delivers his first Budget later this year.

The Exchequer returns until the end of September show a stunning increase in tax revenues for the first nine months of the year, which should slash this year’s deficit from the forecast €2.8bn to €1.2bn.

This is coupled with an extraordinary drop of €1bn in projected Government spending so far this year. However, finance officials said yesterday that the new five-year envelope system for capital funding would mean the shortfall will be made up between now and December and spending would be on target.