The Government is continuing to take in more than expected in tax receipts while spending less than expected in all departments, according to the latest Exchequer figures.
They show that there was an Exchequer deficit of just under €143m in the first five months of the year.
Total tax receipts are running more than €200m ahead of the Budget target at €14.5 billion. VAT and Stamp Duties are strongly ahead of projections, while income tax receipts are broadly in line with expectations. Corporation Tax receipts are around €130m behind target, however.
Total spending of €12.8 billion is also lower than the estimate of €13.5 billion set out at Budget time.
Spending by the Department of Transport is 21.5% behind target, while the total for infrastructure or capital spending is running 19% behind.
A breakdown showed that receipts from the business sector were disappointing during the month. The total collected from business in May was €114m less than expected. As a result Corporation Tax receipts are now running €127m behind target after the first five months of the year.
But stronger than expected consumer spending has more than made up for this shortfall. Receipts from VAT on the sale of goods and services were €161m, or 3%, ahead of target by the end of May.
New car sales were up 16% in the first four months of this year, and the value of overall retail sales was up 5.6%. Both of these factors would have boosted the VAT total collected by the Exchequer.
In a similar vein, receipts from excise duties were also strong and have provided €59m more than expected so far this year.
The continued strength of the property market is also paying dividends. Receipts from stamp duty, paid mainly on property purchases, were €52m or 6% above expectations so far this year.
Taking all tax headings together the new figures show overall receipts running €240m, or 1.67%, above expectations. Nevertheless, this is less than the over-performance at the of April when taxes were €288m ahead of expectations.
On the spending side, nearly two thirds of the underspending relates to current, or day-to-day, spending by Government departments. Just over a third relates to capital or infrastructural investment. Spending on infrastructure is now running 19% behind target.
The Government still expects borrowing to hit €3 billion by the end of December.
