Tax revenues in March were 7.6% lower than expected, while for the first quarter of the year revenues were 2.4% below target.
March tax income was €3.9 billion, around €326m less than expected.
Cumulative tax revenues for the three months to the end of March were up 3.2% or €356m in year-on-year terms, which equates to an under-performance against target of 2.4% or €282m.
Overall, total net voted expenditure (spending that the Oireachtas can change from year to year, which excludes items such as debt interest) to end-March 2017, at €10.7 billion, was up 5.7% or €583m in year-on-year terms but down 1.1% or €123m against profile.
Combined receipts from non-tax revenue and capital receipts were down 37.6% (€625m) year-on-year, while non-voted expenditure was down 29.5% or €1.1 billion, driven primarily by the absence of short-term loans to the Social Insurance Fund in the year to date.
All of the big four tax headings – income tax, corporation tax, VAT, and excise duties – brought in less tax than expected in March.
During the first quarter, income tax receipts were up 1.4% compared with the same period a year ago, but this was almost 4% - or €180m below target.
This contrasts with strong employment growth of 3.3% recorded last year.
Figures from the CSO earlier today showed unemployment had fallen from 8.3% to 6.4% over the past year.
The volatility of corporation tax receipts was underlined by the March figures, which showed receipts of €248m – €163m lower than target.
Corporation tax receipts for the first quarter were €134m lower than in the same period last year, despite strong economic growth in the meantime.
March is a VAT-due month and receipts in the month totalled €1.75 billion.
This represents a small shortfall of 3.4% (€61m) against target.
Looking at the position in the year to date, receipts have been very strong and are now up 17.3% (€673m) in annual terms, which equates to a 3.4% surplus against profile.
Excise duties – the last of the "big four" taxes, finished the month €27m or 5.5% below target.
In cumulative terms, receipts of €1.27 billion at end-March were down 6.6% (€91m) against target.
The under-performance is across a range of excise components.
The smaller tax headings have seen mixed performance in the first quarter, with Local Property Tax, Customs and Capital acquisitions tax ahead of target.
But even combined they are far below the revenues raised by the big four.
March is a key month in terms of Local Property Tax, with payments due via the Single Debit Authority.
The performance in the month was solid with receipts coming in 1.4% (€2m) above profile.
This brings the total for the year to date to €225m, which is 3.3% ahead of profile.
Stamp Duty receipts under-performed in March, closing the month €16m below target.
Turning to the cumulative position, receipts are marginally down, 2.8% (€6m) in year-on-year terms.
€10m was recorded in Capital Gains Tax receipts in March, up €2m against target.
Looking at the position in the year to date, receipts are now €3m below profile.
Capital Acquisitions Tax receipts of €16m were collected in March.
As a result total receipts in the year-to-date are up €8m in annual terms.
Customs receipts of €25m were collected in March 2017.
As a result cumulative receipts at end-March were up 5.2% in year-on-year terms.
An Exchequer deficit of €903m was recorded to end-March 2017.
This compares to a deficit of €1.17 billion over the same period last year.
The €266m year-on-year improvement is primarily due to increased tax receipts, which is partially offset by increased expenditure.
Commenting on the figures, Minister for Finance Michael Noonan said: “Receipts are up on the same period in 2016 and today’s figures from the CSO, which show the unemployment rate for March 2017 is down to 6.4%, help to explain this increase.
"However, receipts are slightly behind expectations for the year to date.
"The Department of Finance will monitor that and the Government will ensure that taxes can be set at an appropriate level and vital public services can be paid for."
