Exchequer deficit was €7.1bn in the
first quarter of 2011. This compares to a deficit of
€3.9bn in the corresponding period in 2010. The
deficit includes €3.1bn in Promissory Note payments to Anglo
Irish Bank and Irish Nationwide Building Society in March 2011.
Absent this amount the shortfall would have been -€3.9bn.
Budget 2011 target
of €34.9bn or 9.9% up year-on-year due to impact of Budget tax
raising measures, including USC (universal social charge);
quarter 1 2011 tax revenue at €7.5bn; €270m or 3.7% up
year-on-year; €136m or 1.8% below target with shortfalls in VAT
and income tax offset to some extent by excise duty and
corporation tax surpluses.
Year-on-year increase in spending largely due to
reclassification of health levy receipts to form part of USC – -
has the effect of increasing net voted expenditure.
The interest on the
national debt was €791m.
End March Exchequer Returns Presentation
End March Analysis Net Voted Expenditure
End March Analysis Tax Receipts
End March Exchequer Statement
Commenting on the end-March 2011 Exchequer
Returns, Minister Michael Noonan said: “The Exchequer
deficit in the first quarter of the year, at just under €7.1bn,
is broadly in line with my Department’s expectations at this
point in the year and means that we have met the target set
under the joint EU/IMF programme of financial support.
receipts in the period to end-March, at €7½bn were some €270m
above the same period in 2010 but €136m or 1.8% below
expectations. In the overall context, this is not a significant
shortfall. However, today’s figures show a mixed performance in
the inpidual tax categories. VAT and income tax have shown
signs of weakness and given their importance, their performance
will need to be closely monitored in the coming months.
On a more encouraging note,
corporation tax and excise duties have continued the good
performance of last year in the opening months of 2011.
While the weakness in certain taxes
is a concern, the overall Exchequer targets set in the Budget
remain valid at this point in the year. My Department is
currently in the process of updating the macroeconomic and
fiscal outlook in preparation for the submission of our
Stability Programme Update to the European Commission by the end
of this month.”
Expenditure to date in 2011 Minister Brendan Howlin stated;
“At €10.9bn, overall net voted expenditure is up 1.7%
year-on-year. This is largely due to the reclassification of
health levy receipts to form part of the Universal Social
Charge, which has the effect of increasing net voted
expenditure. Overall net voted expenditure is being managed
within the limits set out in the Revised Estimates and was €255m
below profile in the first quarter of the year."
concluded that: “The Government’s
decisions last week to restructure the Irish banks and to
improve credit availability are necessary elements of economic
recovery. These decisions combined with the implementation of
the Programme for Government will put Ireland on the road to
economic recovery. The Government is now moving on to the next
phase of our plan, the Jobs Fund, which will create a more
attractive environment in Ireland for investment and job
Davy economist, Conall McCoille, commented:
Tax revenues slightly behind expectations
- Income tax and value added tax receipts were
4.2% and 5.4% weaker respectively in Q1 2011 than the expected budget
- However, corporation tax receipts were
€216m, well ahead of the €139m target. Customs and excise duties were also
stronger than expected by €72m;
- Today's tax receipts indicate that consumer
spending and employment are weaker than the budget forecasts, but this has
been offset by the stronger export sector;
- Overall, tax revenue was 1.8% weaker than
the Q1 target, a slight improvement compared with the 2.6% shortfall in the
first two months of the year.
Expenditure weaker than expected
- Net voted expenditure was 1.7% higher than
in the corresponding period of 2010;
- However, this increase related to a
reclassification regarding the Universal Social Charge;
- Eliminating the impact of this
reclassification, net voted expenditure was 2.3% lower than expected for Q1;
- The exchequer deficit was €7.1bn in Q1
following the €3.1bn payment of promissory notes already included in last
year's general government deficit and debt.
Returns meet target set under EU/IMF
- Overall, today's Exchequer Returns are
broadly in line with expectations;
- The Minister of Finance has indicated that
the returns meet the target set under the EU/IMF programme.