Figures from the Department of Finance show that the amount taken in in tax in the first seven months of this year was slightly ahead of targets set earlier this year. The figures include the money injected into the main banks to help them meet financial targets by the July 31 deadline.
A total of just over €18.6 billion in tax was collected, €263m or 1.4% ahead of target. Three of the big four tax categories were ahead of expectations, but VAT was almost 3%, or €190m, behind as consumer spending remained weak.
In July, VAT on a number of items was reduced as part of the Government's jobs initiative, but the full effect of this is not likely to be seen for a couple of months. VAT has been lagging behind for most of the year.
Income tax receipts were €160m better than expected, though they were boosted by earlier than expected DIRT payments. Corporation tax was €93m or 6% above target, while excise duties were 2.6% or €67m ahead. Stamp duties were almost 28% ahead of expectations, lifted by earlier than expected payments from the pension fund levy introduced in the May jobs initiative.
Overall, there was an Exchequer deficit of €18.9 billion for the first seven months of 2011, up from €10.2 billion in the same period last year. But more than €10 billion of this was due to money injected into the banks, with €7.5 billion going into the main banks to help them meet financial targets by the end of July. Excluding these payments, the Exchequer deficit was down almost €2 billion from a year earlier.
Total spending for the first seven months was €25.7 billion, €536m or 2%, less than the Government had targeted. Current spending was 1.4% below expectations, while capital spending was 10.6% lower than projected, though the Department of Finance said this was mainly down to timing issues.
