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Thursday 19 September 2019

State coffers boosted by increased tax take

Finance Minister Paschal Donohoe. Picture: Gerry Mooney
Finance Minister Paschal Donohoe. Picture: Gerry Mooney

David Chance

Government coffers have been boosted by rising tax and other revenues, although the headline number in October fell sharply from the figure a year ago, which was flattered by the sale of a stake in AIB.

A deficit of €2.7bn was posted to the end of October 2018, compared with a €326m surplus a year earlier thanks to that sale.

Stripping out those effects, the underlying balance rose €414m, according to the Department of Finance.

Tax revenues rose 6.8pc to €42.2bn, which was slightly ahead of forecasts, while spending rose 9.2pc to €40.1bn, modestly more than was projected. A surge in corporate tax accounted for much of the gain, also allowing Finance Minister Paschal Donohoe to bolster spending while moving towards a balanced budget.

Cumulative receipts from company taxes at the end of October were €6.7bn, up 4.3pc from a year earlier and 19pc ahead of plan. Motor and capital gains taxes were also ahead of plan.

Finances have recovered sharply since the financial crisis, in large part thanks to a surge in growth that has pushed the State to the top of the European league table.

Irish Independent

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