Exchequer returns show tax revenues up €2.6bn in 2012

 

The Exchequer deficit – a measure of the difference between central Government spending and revenue - was smaller in 2012 compared to 2011, end of year figures released by the Department of Finance have shown. The figures were better than expected on budget day just one month ago.

Although all Government spending and revenue figures are not yet available, Minister of Finance Michael Noonan said today that the widest deficit measure - and the one watched most closely by financial markets and the EU-IMF bailout troika - will come in below 8 per cent of gross domestic product for 2012.

On budget day less than a month ago this measure – known as the General Government deficit - was expected to stand at 8.2 per cent of GDP in 2012. A year ago the target was 8.6 per cent.

Today’s figures will add momentum to the Government’s efforts to exit the bailout and are likely further to boost international investor sentiment towards Ireland.

Among the most positive out turns from today’s figures was a very strong surge in tax revenues in December compared to the same month a year earlier.

An increase in receipts of almost 30 per cent was the second highest year on year increase for a single month since the recession began. Much of the increase was accounted for by unexpectedly large payments of corporation tax by two (unnamed) foreign multinationals.

For the full year, tax receipts were up by €2.6 billion on 2011, a 7.7 per cent year-on-year increase. When adjustments are made for one-off factors, the increase is somewhat smaller, a 5.3 per cent. Total tax receipts for 2012 stood at €36.65bn.

Exchequer expenditure in 2012 was in line with target, with overspends in health and social protection offset by underspending in other areas.

The non-voted capital expenditure was down by €8.3bn as “a result of the settlement of the IBRC promissory note with Government bonds and the fact that July 2011 banking recapitalisation payments were not repeated last year” according to officials.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.