The Finance Department has reported an Exchequer deficit of €24.6 billion for 2009, which is better than had been expected in the December Budget. It compares to a deficit of €12.7 billion in 2008.
Tax revenues were 3.9% below target at just over €33 billion. They were down 19% in 2009 compared to 2008 and Finance Minister Brian Lenihan said the last time that receipts were at this level was 2003.
The figures also show that total expenditure for the 12 months to December was 0.5% less than profiled at €47.2 billion.
Breaking down the tax receipts, they show that stamp duties fell 43.7% year on year to €930m - over 5% short of Government targets. Income tax declined by 10.2% to €11.8 billion - again 5% short of targets as more people lost their jobs.
VAT receipts dropped by 20.6% to €10.7 billion - 6.6% short of the Government's target. Corporation tax declined by 23% year on year to €3.9 billion but surpassed targets by 4.3%.
Capital gains tax slumped over 62% in 2009 compared to 2008 to €542, or 13% behind Government guidance.
Read more details of the tax figures here
Mr Lenihan said the deterioration in the deficit is mainly due to a decline in tax receipts of €7.7 billion, an increase in debt charges of €1.1 billion, a decrease in expenditure of €2.2 billion, the €4 billion payment to Anglo Irish Bank and €1.3 billion in respect of the annual contribution to the National Pensions Reserve Fund.
'Given the small improvement in the actual deficit over that anticipated in the December Budget we face into this year's task with a greater sense of confidence,' commented the Finance Minister.
He said the improvement in the 2009 position is due to a better than expected performance in tax revenues in the month of December.
'The challenges we face are great but the Government is committed to the targets set out in the recent Budget. Economic growth will return during the course of this year and this will assist in the ongoing improvement in the public finances,' Mr Lenihan said.
Strong pick-up in retail spending in December
Bloxham economist Alan McQuaid noted that the result for 2009 was €619m lower than the figure of €25.26 billion pencilled in by the Finance Department in last month's Budget. He said that strong retail spending in the run-up to Christmas and a pick-up in excise duties were factors here.
'It is fair to say that at the least the economy ended a truly awful 2009 on the front foot, which can only augur well for 2010,' he added.
He said he was encouraged by the measures introduced in the December Budget. 'If the Government can continue to move in the direction it has taken, then there is every reason to be optimistic about its chances of stabilising the public finances over the next few years,' the economist added.
