EXCHEQUER figures to be published today will show a strong growth in income tax revenue which will benefit the Minister for Finance as he frames this month's Budget.
Intense political discussions are due to begin on the final shape of the package, with Mr Quinn expected to have up to £200 million available to reduce taxes and PRSI and about £80 million to spend on increasing social welfare.
Today's figures will give the final outturn for 1995. which is expected to show borrowing below the £8 13 million Budget target. This is mainly due to the growth in income tax revenue.
Rising job numbers have increased revenue in this area well above target. with the latest evidence of a buoyant jobs market coming yesterday as IDA Ireland reported that employment in foreign owned industry increased by a record 6,500 last year. The IDA is confident that the figures for the next 12 months will be even better.
Despite the benefit to the Exchequer of these strong job trends, Mr Quinn may warn today that some of the recent forecasts about how much he will have to spend on Budget day are overly optimistic.
Sources say social welfare increases of 3.5 to 4 per cent are likely to be agreed at a cost of £80 million to £90 million. At least 50 million is likely to be available to reduce taxes, and sources are confident that this could rise to £200 million when the extra cash left in departmental balances at the end of last year is counted in.
The Government will be slow to impose additional indirect taxes
