Figures from the Department of Finance this evening show that there was an Exchequer surplus of €33m for 2004. This compares with the December 2003 Budget Day prediction of a deficit of over €2 billion for the year and a deficit of €980m the same time last year.
Total tax recepits amounted €35.581 billion for the year, up 10.8% compared to the target of 4% in the December 2003 Budget.
Total spending at €32.548 billion increased by 5.9%, slightly less than the target of 7% for the year.
The Finance Department figures show that tax revenue at €35.581 billion was 6.5% ahead of target. It said this was due to better than anticipated receipts from nearly all tax heads, especially Capital Gains Tax and stamp duties and extra once off money from Revenue's special investigations.
Commenting on the figures, Finance Minister Brian Cowen said he was pleased that the economy performed better than had been expected, especially in the housing and construction sectors.
'This better economic performance meant that more tax revenues, especially from capital taxes, stamp duty and VAT,' he said.
'I also welcome the fact that in 2004 the Government carefully managed spending so that it came within target,' he added.
Minister Cowen said that the international economic prospects for 2005 are favourable. However, he cautioned that the sitution is not without risk and said the country needs to manage expenditure within the agreed Budget for 2005.
'We are focusing our additional resources on the key areas of health, education, science and social welfare. The continuation of prudent fiscal and spending policy will nuture further growth in our economy, thereby generating the tax revenues necessary to improve our public services,' he said.
