Wednesday 28 September 2016

Exchequer Returns: corporation tax intake higher than expected as goverment spending falls slightly

Published 04/04/2016 | 16:44

Brendan Howlin, Minister for Public Expenditure and Reform
Brendan Howlin, Minister for Public Expenditure and Reform

Corporation tax continues to pour into the State’s coffers at higher rates than expected, but other taxes have dipped since the start of the year.

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Overall revenue and expenditure results for the first three months of 2016 are generally in line with expectations, according to official Exchequer Returns published on Monday.

Total tax revenues are up 1.1pc ahead of profile – or expectations - and up 6.4pc compared to the same time last year. But receipts from corporation tax were €654m, which is €99m (17.9pc) more than a year ago and €305m (87.3pc) above profile.

Government spending fell in the period, though only marginally.

"Today’s Exchequer Returns highlight the continued growth in the Irish economy and the benefits of collecting revenues from a broad base. Each of our key tax headings are close to target and collectively our tax take is on track,” the acting Minister for Finance Michael Noonan.

The figures show Ireland recorded a deficit for the period of €1.17bn. That compared to a surplus in the first quarter of last year, but the 2015 figures were flattered by a one of payment from the National Treasury Management Agency of cash raised from the sale of banking assets.

The latest figures show that stripping that out there has been an improvement of €267m over the exchequer deficit from the first quarter of 2015.

Minister for Public Expenditure and Reform, Brendan Howlin TD said the figures were positive,

“At this stage of the year, with only just over 23pc of Departmental allocations spent, it is too early to assess spending figures trends for the year. However, it continues to be the case that Ministers and Departments are well aware of the importance of managing the delivery of public services within their annual allocations,” he said.

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