THE GOVERNMENT appears on track to meet its 2011 budgetary targets, according to the latest exchequer figures, published yesterday by the Department of Finance.
At the half-year stage, the gap between revenue and spending is close to original projections set out last December. Tax revenues in the January-June period came to just under €15.3 billion, some €115 million or 0.7 per cent below the target set by the Department of Finance last December.
Reflecting the continued weakness in consumer spending, VAT receipts were behind target by €134 million, or 2.6 per cent, in the first half of the year.
Corporation tax receipts were also behind target, by €116 million, or 7.6 per cent. By contrast, income tax receipts came in almost on target, with €6.03 billion collected in the first half of the year.
The exchequer’s income tax take was up 21.5 per cent on the same period last year, largely reflecting the introduction of the universal social charge and other tax increases.
Of the other “big four” tax category, excise duty was the only one to come in significantly ahead of expectations by 3.7 per cent.
The half-year snapshot of the public finances showed total spending in the year to June was €343 million or 1.5 per cent below target. A breakdown of the figures indicated current spending was €219 million, or 1.1 per cent below target. Capital spending was €124 million or 6.4 per cent less than budgeted due to shortfalls in the health, environment and agriculture spends.
The exchequer deficit for the first six months of the year stood at €10.8 billion, compared to €8.9 billion at the same stage last year. When the €3.08 billion used to recapitalise Anglo Irish Bank, Irish Nationwide and EBS building society is stripped out, the deficit fell by €1 billion.
Minister for Finance Michael Noonan predicted Ireland would meet its year-end exchequer deficit target of €18.2 billion or 10 per cent deficit to GDP ratio set out in the EU-IMF rescue plan.
Much of the increase in income tax was put down to the reclassification of health levy receipts as income tax, under the universal social charge, which had the effect of increasing expenditure.
