The latest figures from the Department of Finance reveal that there was an Exchequer surplus of over €1.8 billion for the five months to the end of May, up from a deficit of €143m the same time last year. This was due to higher than expected tax revenues and spending falling 3.4% below Budget targets.
Total tax receipts amounted to €16.968 billion, over €870m, or 5.5% more than the target set out by the Government in the Budget. This is up 16.7% on the same time last year.
Total spending by the various Government departments is about €490m behind targets at €13.875 billion.
Income tax receipts are still running just slightly below targets at just under €4.4 billion. The other main tax categories are well ahead with Customs up to €107m, excise duties up to €2.327 billion, capital gains tax up to €834m and capital acquisitions tax up to €130m.
Stamp duties at €1.294 billion continue to show the strong state of the Irish construction industry, while VAT receipts at €6.252 billion were ahead of targets of €6.165 billion.
Finance Minister Brian Cowen said in a statement that he was glad to see that, after a relatively weak performance last year, corporation tax receipts account for a major part of the excess in tax revenues so far this year. But he warned that as over 60% of corporation tax is due in the final quarter of the year, it is too early at this stage to make a judgement on how this source of revenue will perform for the year as a whole
On expenditure, the Minister said that the figures show that total voted expenditure is up almost 8% year on year. He said that a number of departments have spent less than expected due to factors such as timing differences.
'Overall planned expenditure for this year by departments is expected to be as profiled by year end,' the Minister added.
