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Sat 07 Jul 2010Economy to grow in 2010 as tax take stabilises, says Finance

THE DEPARTMENT of Finance is planning to upgrade its economic forecast for the year to allow for growth rather than shrinkage.

The shift comes as Exchequer data for the first half of the year points to further stabilisation in the public finances, despite continued sharp weakness in income tax receipts. The latest figures, published by the Department of Finance yesterday, show income taxes were 5.8 per cent behind the Government’s expectations for the first half of the year. In June alone, income tax came in €84 million below forecasts.

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