THE State is expected to take in fractionally less tax this year than expected.
Latest figures published early this morning by the Department of Finance, ahead of Tuesday's Budget, show that €37.83bn is projected to be taken in – about €125m less than forecast. But despite this, the Government expects that it will come in ahead of its budget deficit target this year.
The figures forecast that the amount taken in through income tax and VAT will be less than targeted, while the controversial property tax and corporation tax receipts look set to be greater.
Finance Minister Michael Noonan announced last week that Tuesday's Budget will see tax increases and spending cuts of about €2.5bn – around €600m less than planned.
The budget deficit is expected to be 7.3pc of the value of the economy – ahead of the 7.5pc target the State must meet this year. Key projections for 2013 include:
* €15.73bn will be brought in through income tax – down from the €15.86bn target.
* €10.37bn looks set to be collected in VAT – down from the projection of €10.56bn.
* €300m is forecast from the property tax – up from the expected €250m.
* €4.36bn is expected to be taken in through corporation tax – up from the projected €4.14bn.
* €4.7bn will be taken in in excise duty – down from the forecast €4.9bn.
* €1.3bn will be brought in through stamp duty – up from the projected €1.2bn.