| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Dec 3, 2010 - 5:24:05 AM


Irish Exchequer deficit at end-November 2010 was €13.3bn; Corporation tax was €589m above target
By Finfacts Team
Dec 2, 2010 - 5:02:21 PM

Email this article
 Printer friendly page

The Irish Exchequer deficit, at end-November 2010 was €13.3bn compared to €22.1bn at end-November 2009. The four-year National Recovery Plan 2011-2014, published last week, set out that the Exchequer Borrowing Requirement (EBR) in 2010 would be €18.8bn, in line with the December 2009 Budget day target. Corporation tax was €589m above target.

The Department of Finance said this afternoon that the €8.8bn year-on-year improvement in the Exchequer deficit is largely due to payments of €3bn to the National Pensions Reserve Fund (NPRF) and €4bn to Anglo Irish Bank, which were made in 2009 and not repeated in 2010.

Taxes are just under €1.3bn or 4.1% below the same period last year with net spending €1.8bn or 4.2% lower. Non-tax revenue is up €1.9bn in the year, due primarily to €1.3bn in fees from the State bank guarantee schemes and increased surplus income of the Central Bank. On the non-voted current spending side, debt interest costs are just over €700m higher year-on-year.

Tax receipts in the period to end-November amount to €29.5bn. This is €470m or 1.6% above target. The Department said November is the largest month of the year for tax revenues and all tax-categories performed above expectations in the month. On a cumulative basis, all taxes with the exception of income tax are above target in the first eleven months. A corporation tax surplus of €589m, combined with smaller surpluses in the other tax-heads, most notably excise duties and VAT, offset the income tax shortfall of €356m. Income tax from the self-employed in the month of November performed better than expected although PAYE receipts came in below target.

The year-on-year rate of decline in tax revenues now stands at 4.1%. The National Recovery Plan 2011-2014 forecast a €450m surplus in tax revenues for the year as a whole. The end-November tax figures are in line with this estimate.

Total spending at end-November 2010 is €40.8bn, which is €1.8bn or 4.2% below the same period in 2009. The Revised Estimates Volume projected a decline of 1.9% in total net voted expenditure in 2010.

Net current spending at €36.4bn is slightly below target (-€166m or -0.5%) and is €495m or 1.3% down year-on-year, despite the large anticipated increase in the current spending of the Department of Social Protection due to high unemployment.

Net capital expenditure, at just under €4.4bn at end-November is €1.3bn or 23% below the corresponding period in 2009. It is €851m or 16.3% below target. The expected savings in capital expenditure at year-end are likely to be largely offset by the costs associated with staff redundancies at the HSE.

End November Exchequer Statement (pdf)

End November Analysis of Taxation Receipts  (pdf)

End November Analysis of Net Voted Expenditure  (pdf)

NCB Stockbrokers economist, Brian Devine, commented: "With regard to the banking sector drag, the ECB confirmed that they would provide fixed rate full-allotment auctions for 3 month money throughout Q1 2011. The ECB also stated that it would continue conducting its main refinancing operations (1 week) and one month operation as fixed rate full-allotment auctions for 'as long as necessary.'

In simpler terms this means the Irish banks with sufficient eligible collateral can tap the ECB for as much funds as they desire at (currently) 1%, thus aiding funding cost for the banks and postponing the inevitable squeeze on net interest margins. The longer these measures remain in place by the ECB the better for the Irish banks and therefore the Irish sovereign.

As frustrating as the banking sector has been, it is worth remembering that the rest of the economy is still operating and trying to fight its way out of the recession despite the continued damage to confidence. The decent tax data comes on the back of an expansion in the manufacturing PMI in November and also a decline of 4,200 persons from the Live Register (unemployment claims), which saw the unemployment rate fall from 13.6% to 13.5%."

Related Articles
Related Articles


© Copyright 2010 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March