Wednesday, June 3, 2009

Ireland’s Fiscal Tightrope

brian-boru-celtic-harp The Irish Exchequer Statement for the five months ending 31 May 2009 show that the Government has spent €25.6 billion and had an income, from tax and other sources of €15 billion.  This leaves an Exchequer deficit of €10.5 billion, financed by borrowings of €8.9 billion and other deposits of €1.6 billion.  Interest paid on Government debt amounts to €1.58 billion.

The table below summarises the profile of tax receipts and compares these to Profile of Exchequer Tax Revenue Receipts 2009.  The State is €37.2 million ahead of projections in the aftermath of the April 2009 Budget.

Tax Receipts for 5 months to 31 MAY 2009

€ Million

Projected

Actual

+ / -

Customs

92,000

88,280

-3,720

Excise

1,655,000

1,753,832

98,832

Capital Gains

202,000

189,226

-12,774

Capital Acquisitions Tax

116,000

105,890

-10,110

Stamps

315,000

294,370

-20,630

Income tax

4,589,000

4,634,263

45,263

Corporation Tax

1,012,000

1,138,985

126,985

VAT

5,511,000

5,305,559

-205,441

Training and Employment Levy

831

Unallocated

0

18,046

18,046

TOTAL 

€13,492,000

€13,529,282

37,282

Spending at the Department of Agriculture & Food is €248 million more than this time last year and should be considered in the context of the output of agriculture and fisheries is a mere €3.88 billion, having dropped from €4 billion in 2005.

Health expenditure is €200 million ahead of last year and welfare spending is , predictably, €457 million ahead of this time last year, following steep increases in the Live Register.

One item of expenditure that is noteworthy is the €6.33 million paid to the Leaders of the political parties, pruned by 10% but this is partially offset by the overhead to run the Leinster House enterprise - €367,000 more expensive than last year.

The cost of the local and European elections amount to €8.5 million.

Cumulative Fiscal Progress – 2009

 

Month

Total Receipts

Total Expenditure

Exchequer Deficit

Borrowing

Dec 2008
(Year)

43,021,778

55,735,598

-12,713,820

30,310,525

Jan

4,281,998

5,029,215

-747,217

6,674,212

Feb

6,577,074

8,661,834

-2,084,760

6,398,172

Mar

9,433,404

13,154,149

-3,720,745

10,234,357

Apr

11,645,341

18,961,729

-7,316,388

6,579,469

May

15,090,952

25,678,595

-10,587,643

8,987,279

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