Irish Finance Minister Unveils Half-Year Exchequer Returns

by Jason Gorringe, Tax-News.com, London

06 July 2005

The Irish Exchequer recorded a deficit of EUR594 million for the first half of 2005, although an increase in tax revenues showed that the economy continues to perform well, according to Minister for Finance Brian Cowen.

"The results to the end of the second quarter indicate that the public finances remain on course," commented Mr Cowen.

"Tax revenues are 2% - EUR320 million - ahead of profile so far. Apart from costs arising in relation to the refund of nursing home charges, public expenditure in 2005 is expected to be in line with estimates. Sound public finances are the basis for sustainable growth. I intend to stick to that prescription.”

Total current receipts in the first six months amounted to EUR17.52 billion compared to receipts of EUR17.05 billion for the same period in 2004.

According to the government's figures, tax revenue, at EUR17,239, million is EUR320 million ahead of profile. A better than anticipated performance from VAT and Excise accounted for EUR174 million and EUR118 million respectively of this excess. Year on year tax receipts were up 4.2% compared to the profiled increase of 2.2% to end June 2005.

Non-tax revenue in the first half of 2005 was EUR282 million. This compares to EUR498 million for the same period last year and is broadly in line with expectations.

Capital receipts for the six months amounted to EUR266 million compared with EUR217 million for the same period last year.

On the expenditure side, overall net voted spending was EUR15.6 billion at the end of June compared to EUR14.7 billion for the same period last year, an increase of 6%. This was EUR768 million below the profile published in January and compares to the planned increase of 11% for the year as a whole provided for in the Revised Estimates.

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