Tax revenue up but below targets
The State’s tax receipts rose between 2012 and 2013 but were below targets set by the Department of Finance. This has been explained by businesses increasing their stocks and low bank interest rates on consumer deposits. The provisional figure for overall tax revenue stood at €37.8 billion, up from €36.6 billion but €144 million lower than expected. When non-tax sources were included, the total revenue figure rose to €44.7 billion.
Public expenditure was €56.2 billion, hence an exchequer deficit of €11.5 billion. The shortfalls for VAT receipts and income tax were €224 million and €102 million respectively although these were partly offset by other sources.
Minister for Finance Michael Noonan pointed to improvements since 2012. “Overall, the exchequer returns show that the tax base continues to grow in line with targets and provides a solid foundation going into 2014,” he said. “Of particular note is the performance of income tax which is up 3.8 per cent year-on-year. As there has been no increase in the rate of income tax, the strong performance is reflective of the improving labour market conditions.”
Noonan has also welcomed the successful syndicated sale of €3.75 billion in bonds by the National Treasury Management Agency, as this “brings us far closer to the borrowing rates of the strongest European economies.”
On voted expenditure (€43.1 billion), Minister for Public Expenditure and Reform Brendan Howlin remarked that the figures “reflect the Government’s commitment to ongoing strong expenditure control” and net voted expenditure was “well within profile for the year.”
