Figures from the Department of Finance show that there was an Exchequer deficit of just over €1.1 billion in the first nine months of this year, with tax receipts running €1 billion ahead of expectations.
Finance Minister Brian Cowen said the figures indicated that the public finances were in a sound position. He said tax revenues were well ahead, helped by money from Revenue investigations, while spending for the year was expected to be in line with estimates.
Total tax revenues for the nine months were €1 billion ahead of target at €26.4 billion. Receipts had been expected to rise by 3.4% at this stage, but are instead up by 7.5%.
Income tax, including money from Revenue probes, was €300m ahead of expectations, while VAT and stamp duties are around €350m ahead of target. Corporation tax receipts are €280m lower than expected, however.
Total spending is below the estimates set out in the Budget, and is running 9% ahead of the same period last year. The Government is expecting an 11% increase in spending for the year as a whole. Capital spending is €350m below expectations, mainly because of slower than expected spending in the Department of Transport, the Health Service Executive and the Office of Public Works.
The Department of Finance said it was not possible yet to say how much of the estimated €1 billion cost of refunding nursing home charges would fall for payment this year. In August the department said it expected an Exchequer deficit of €2.7 billion this year.
Davy Stockbrokers said the Corporation Tax figure appears to mirror a disappointing performance by the multinational sector. Davy expects tax revenues to be up to €1.3 billion higher than forecast, meaning that Exchequer borrowing should be about €1.5 billion below the €3 billion forecast at the beginning of the year.
