Tax revenues received by the Government for the first seven months of the year were slightly ahead of targets set out earlier this year, according to Exchequer returns published today.
However the budget deficit continued to widen, on the back of a €10 billion injection into the banks.
Overall, a total of €18.6 billion in taxes was collected, up by 8.6 per cent on the same period in 2010, or 1.4 per cent ahead of the target set out in January, and three of the “big four” taxes were in surplus.
Higher than expected income tax returns helped push receipts up, with a total of €7.3 billion collected, 2.2 per cent ahead of the target, and up by 25 per cent on the same period in 2010. Income tax receipts were boosted by measures such as the introduction of the Universal Social Charge in last December’s Budget.
Corporation tax revenues were also better than expected, at €1.7 billion, up by 6 per cent on targets, and by 1.4 per cent on 2010. This was due in part to a delay in payments from May.
Excise duties were also ahead of expectations, with a total of €2.6 billion collected, 2.6 per cent ahead of January’s target.
Stamp duties exceeded the target by 27.8 per cent, at €415.4 million, due to the contribution of the pension fund levy, which was introduced to finance the Jobs Initiative in May.
Reflecting continued weak consumer spending, however, value-added tax (VAT) receipts were lower than expected, by almost 3 per cent or €190 million, at €6.4 billion.
In the first seven months of the year some €10.7 billion was put into the banks as part of recapitalisation efforts, which pushed the budget deficit up to €18.9 billion, up from €10.2 billion for the same period in 2010.
However, when the contribution to the banks is stripped out, the budget deficit stands at about €2 billion less than this time last year.
Total spending was €25.6 billion, 2 per cent, or €536 million less than predicted, and 0.9 per cent less than the same period in 2010.
Fianna Fáil's spokesman on public expenditure Michael McGrath welcomed the figures, which he said showed the implementation of Budget 2011 to be "broadly on target".
He said: "Despite opposing "almost every aspect of Budget 2011 tooth and nail, Fine Gael and Labour are now overseeing its implementation in Government."
Mr McGrath said "mixed messages being given by the Government on its plans for income tax and welfare changes in next December’s budget were not helping to build confidence among consumers".
