Late Tax Revenue Boost Improves Irish Budget Deficit

by Jason Gorringe, Tax-News.com, London

07 January 2004

A late surge in tax receipts helped the Irish Exchequer close the gap between revenues and spending in 2003 according to the latest tax revenue statistics released by the Department of Finance.

Whilst a 1.9 billion euro deficit was forecast for the end of 2003 in last year's budget, the shortfall came in at 980 million euros, aided by a 9.6% increase in tax receipts and a flurry of revenues recorded in November and December which alone accounted for over half (56%) of the capital tax take for the period.

A significant proportion of this increase was a result of a 1.7 billion increase in the amount of revenues collected from stamp duty which rose by double the forecast amount. Receipts from capital taxes were also higher than anticipated, though income tax, VAT and excise duty revenues were lower than Treasury predictions.

Ministers were said to be cautiously upbeat on the figures, though warning that revenues, particularly from capital taxes, may not be sustained next year and the government’s 2.8 billion euro deficit forecast for the fiscal year remains in place.

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