Figures released by the Department of Finance this evening show that the gap between Government spending and tax last year was slightly narrower than forecast in last month's Budget.
The Exchequer deficit for the year was €24.9 billion, though this was swollen by the costs of recapitalising the banks. Total tax receipts were just over €34 billion, almost €900m short of the original Government target.
Finance Minister Michael Noonan said tax revenue weakened in the second half of 2011, though he added that tax revenue grew by 7% compared with 2010 after three years of falls.
This was mainly due to a 22% increase in income tax - helped by the introduction of the universal social charge. A new levy on pension funds also lifted the take from stamp duty by 45%.
But €261m of corporation tax for December was not received into the Exchequer account in time and will now be included in the January 12 figures.
Compared with the initial Government targets, VAT receipts of €9.7 billion came in around €500m behind target, while income tax was around €300m short. Corporation tax was around €500m lower than expected. But stamp duties were around €450m ahead of target, while excise duties were on target.
Minister Noonan and Public Expenditure & Reform Minister Brendan Howlin said the Government was making progress on the public finances, adding that the deficit excluding banking costs was €2.75 billion lower than in 2010.
Total spending of €45.7 billion last year represented a fall of 1.6% from 2010. Current spending was just under 1% lower than the Government had targeted, while capital spending was 1.4% lower. Compared with 2010, capital spending fell by €1.6 billion or 27.5%.
The cost of recapitalising the banks added €7.6 billion to the deficit last year, though the State also received €1 billion from selling part of its stake in Bank of Ireland.
The cost of servicing the national debt last year jumped by €1.1 billion last year to €5.4 billion.
For 2012, the Government is forecasting an Exchequer deficit of €18.9 billion and a 4.8% in tax revenue to €35.8 billion.
