Exchequer Figures published this evening by the Department of Finance show the Government took in €306m more than expected through taxation in the first two months of the year.
Government Departments also spent €400m less than planned during the same period. As a result, the Government has a surplus of €430m that was not spent by the end of February.
The surge in capital gains tax receipts and stamp duty that materialised towards the end of last year has continued into the early months of this year, according to today's figures. They show the amount of taxes paid by people on profits made through the sale of assets like shares, businesses, and non-residential property is running €200m above target.
In addition, the continued strength of the property market is evident from the amount paid in stamp duties. This is running €35m ahead of target after just two months.
It has all resulted in a €300m addition bonanza for the Exchequer in the first 60 days of the year - an average of €5m of un-budgeted tax receipts per day. It means the amount collected in taxes so far this year is running 21% ahead of this time last year.
This growth in tax receipts is six times stronger than the Government forecast at budget time - although with just two months of the year gone it is far to early to assume that this trend will be replicated in future months.
However, today's figures also show the Government is very slow at spending its new funds. Only two out of 15 Government Departments - Enterprise Trade and Employment, and Foreign Affairs - are above their target level of spending.
All others are below target and some - such as the Department of Environment, Heritage and Local Government, and the Department of Education and Science - spent considerably less than expected in the first two months.
Overall, the amount of spending by Government Departments is running behind target by as much as €400m. That is the equivalent of nearly €7m per day throughout January and February. Just under half, or €190m, of this total under-spending is attributable to investment in infrastructural projects.
Under-spending by Government Departments on their day to day activities accounted for the remainder, or €210m since the start of the year.
The Government issued no comment with today's figures. However, they do suggest that the worst of the economic downturn is over, and that it is quite likely that by the end of this year Government borrowing will be considerably lower than the €2.8 billion targeted for 2004 in the Budget.
