The latest Exchequer figures from the Department of Finance show a deficit of €22.2 billion for the 10 months to the end of October, up from €14.4 billion the same time last year.
The Finance Department says the increase is mainly due to the payment of Anglo Irish Bank promissory notes and the recapitalisation of the banks in July. The Department says that excluding these payments and the €1 billion from the sale of some of the state's stake in Bank of Ireland, the Exchequer deficit fell by over €1.8 billion compared to the same time last year.
Today's figures show that total tax revenues are €184m (0.7%) below target at €26.67 billion. Income tax is €125m (1.2%) below target at €10.5 billion, which the Finance Department described as ''a good performance''.
Excise duties, the third biggest source of tax revenue, are 0.5% or €17m ahead of targets at €3.732 billion. A statement from the Department says that the surplus is due to the fact that some money was collected last month which had been due in September.
But VAT receipts are now showing a shortfall of €383m (4.5%) at €8.196 billion due to weak domestic demand. October is the fifth month in a row where VAT has come in below expectations.
The figures also show that corporation tax is €109m (4.2%) behind expectations and came in at €2.47 billion. November is the key month of the year for corporation tax receipts and its performance will have a significant bearing on the end of the year performance, the department said.
Stamp duty came in 52% higher than budgeted at €1.210 billion due to the payment of €460m from the levy on pension funds, which was not included in the original profile for stamp duty published in February.
The figures also show that the cost of servicing the country's debt up to the end of October increased to €4.2 billion.
Bloxham's chief economist Alan McQuaid said today's figures are ''somewhat disappointing, particularly in relation to the tax side''.
He said the underlying weakness in domestic demand and the general slowdown in the world economy is impacting negatively on receipts. ''We don’t think the Minister for Finance should in Budget 2012 do any more than the €3.6 billion in austerity measures outlined in the EU/IMF bailout,'' he said.
