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Exchequer Returns: Tax revenues on target and up to €28.4bn at end October

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Finance Minister Michael Noonan

Finance Minister Michael Noonan

Finance Minister Michael Noonan

TAX revenues at the end of October were €28.4bn, €1.7bn ahead of the same period last year putting the Government on schedule to meet targets set out by the EU/IMF/ECB troika.

According to the latest Exchequer Returns, revenues are an up 4.3pc compared with last year on an adjusted basis.

VAT is now €106m ahead of target cumulatively while income tax was €26m ahead of profile - November is the biggest month for income tax given the concentration of the self-employed where close to €2.5bn is expected.

Corporation Tax in October was down €225m, however, this had been flagged by the Department of Finance earlier this year.

Excise duties came in below target for the fourth consecutive month in October.

Despite the tax take being ahead of target so far this year, there are pressure points in the Departments of Health and Social Welfare.

Net voted expenditure, at €34.6bn, or €424m, is due partly to overspends in the Department of Social Welfare.

The Exchequer deficit at the end October 2012 was €14bn, compared with €22.1bn in the same period last year – due mainly to the settlement of the Anglo promissory note or IOU with a Government bond and the fact that there were not any banking recapitalisation programmes this year.

The Exchequer recorded a deficit in October of €2.9bn - €1.3bn of this was debt interest and €0.5bn was due to a payment to the European Stability Mechanism – Europe’s permanent bailout fund.

While the tax figures show the Government is on schedule to meet its targets, Finance Minister Michael Noonan will still have to deliver a tough budget when he stands up in the Dail in February.