Figures from the Department of Finance show that there was an Exchequer deficit of just under €10.6 billion in the first five months of this year. This compares with a deficit of €3.6 billion in the same period last year.
Total tax receipts were almost €13.5 billion, in line with estimates published by the department in April but down almost 21% on the same period last year.
This a slightly lower rate of decline than the 24% drop for the first four months. The Government said earlier this year it was expected a drop of 16% in tax revenue for the whole of 2009.
Finance Minister Brian Lenihan said that although the tax take was in line with forecasts, there were 'significant targets' to be achieved in the coming months.
A breakdown showed that the Exchequer took in €4.6 billion in income tax in the five-month period, marginally higher than forecast. Income tax receipts are almost 7% lower than a year earlier, helped by the income levies.
Corporation tax was around €100m better than projected at €1.14 billion. But VAT at €5.3 billion was €200m lower than projected and is down 21% from a year earlier. Capital gains tax and stamp duty were also slightly lower than forecast. Stamp duty receipts are still down 63.5% compared with a year earlier.
On the spending side, day-to-day spending in the five months was €19.6 billion, almost in line with projections. The Minister said spending on public services so far this year was as expected with the main pressures being in the health and social welfare areas.
More details on spending figures
KBC Ireland economist Austin Hughes said that the figures offered signs that the freefall in the public finances may be coming to an end. But he said the picture was still very weak, with VAT, stamp duty and capital gains receipts continuing to fall short of official expectations.
'Much of the improvement reflects unexpectedly large corporation tax receipts. In view of the impact of the downturn on corporate profitability it would seem very unwise to count on this being sustained,' the economist said.
Bloxham's Alan McQuaid said the figures painted a bleak picture of the public finances, but there appeared to be a 'stabilisation in the rate of decline'.
But Labour finance spokesperson Joan Burton said Government's claims about today's exchequer returns had more to do with pre-election spin. She said the Finance Minister had lowered the tax forecast in April, and the Government may now have difficulty meeting even this target.
Fine Gael's Richard Bruton also criticised the Government's reaction to the figures. 'Even after the massive tax hikes imposed on middle income families in May, tax revenues in the first five months of the year were 21% down compared with last year, while the Exchequer deficit tripled to €10.6 billion over the same period,' he said.
