| 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


Finfacts changes from 2015

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
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

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: May 6, 2015 - 8:15 AM


Irish Exchequer Returns: Tax receipts under target in April but ahead in year
By Michael Hennigan, Finfacts founder and editor
May 6, 2015 - 7:03 AM

Email this article
 Printer friendly page

Source: Department of Finance/ Davy

Irish Exchequer Returns show a deficit at end-April 2015 of €2.32bn compared to a deficit of €4.75bn in the same period last year. The improvement in the Exchequer deficit is driven by increased tax receipts and the transfer of €1.63bn from the NPRF (National Pensions Reserve Fund) to the Exchequer.  Meanwhile tax revenues were €518m (4.2%) above target. However, tax revenues for the month of April were down €27m (1.1%) against the monthly target. Tax receipts are up 11.3% or €1.3bn on the same period in 2014.

The Department of Finance reported that income tax receipts of €5.75bn were collected to end-April 2015, a year-on-year increase of €343m or 6.3%. For the month of April, income tax was €83m or 5.2% below target, which is wholly attributable to weaker DIRT receipts on the back of low interest rates.

The first four months of the year saw VAT receipts of €4.03bn collected which represents an increase of €377m or 10.3%, when compared to the corresponding period last year. In addition, VAT receipts of €4.03bn at end-April, were slightly below the cumulative target (€43m).

Corporation tax receipts to end-April were €629m, which equates to a €331m increase when compared to the same period last year and €344m above target.

Non-tax revenues, at €395m were up €11m (3.0%) in year-on-year terms. The primary reason for this increase is a special dividend from the ESB in connection with the state asset disposal programme, which is somewhat offset by reduced ELG (bank guarantee) income due to the closure of the scheme to new liabilities.

Capital receipts at end-April of €3.68bn, were up €972m (35.8%) year-on-year, when the sinking fund 2014 contribution is excluded. The main reason for the increase is the transfer of €1.63bn, of proceeds from the sale in 2013 of preference shares in Bank of Ireland, to the Exchequer.

Interest expenditure at end-April 2015, at €3.03bn was €93m (3.0%) below target, primarily due to lower than expected costs on 2015 bond issuance.

Overall net voted expenditure for end-April 2015, at €13.72bn, was 1.6% or €218m below target and €65m (0.5%) higher in year-on-year terms.  Net voted current expenditure at €13.05bn was down €192m (1.5%) against target and €66m or 0.5% lower in-year-on-year terms.

Conall Mac Coille, chief economist at Davy, commented: "Government deficit still likely to fall below 2% of GDP in 2015: Today’s exchequer statement shows tax revenues underperforming expectations by €27m in April. Tax revenues in April were hit by lower-than-expected revenue from Deposit Interest Retention Tax (DIRT) and VAT refunds hitting measured taxes (largely a timing issue). However, PRSI receipts were €24m ahead of target on the month. Voted expenditure is now €115m year-to-date below Budget forecasts. Finally, the debt interest bill is now €93m below the October Budget forecasts. So, on balance, we still believe the deficit in 2015 will beat the government’s updated forecasts for 2.3% of GDP, probably falling below 2%.

Tax revenues of €12.9bn were recorded to end-April 2015, up 11.3% on the year. Tax revenues were €518m, or 4.2%, ahead of October’s Budget forecast. However, on the month, tax revenues were below target by €27m. This shortfall largely reflected weak DIRT payments, hurt by low deposit rates. Weak VAT receipts were due to refund payments which are largely a timing issue. In any case, the strength of the labour market is becoming apparent in PRSI receipts – €24m ahead of target in April and €147m year-to-date. The recent April Statement assumed that tax revenues would finish the year €1bn ahead of October’s Budget forecasts. On balance, we still think revenues will finish more than €1bn ahead of last October’s projections.

Spending discipline is being maintained across government departments. Gross voted current expenditure was €81m below Budget plans, and capital expenditure was another €34m below. Together, this means that gross voted current and capital spending was €115m below target in the year to April. The exchequer is also benefitting from lower-than-expected debt interest payments, mainly due to the refinancing of expensive IMF loans. Debt interest in the year to April was €93m, or 3.0%, below October’s forecasts. Altogether, the items affecting Ireland’s general government balance are now €890m (or 0.5% of annual GDP) ahead of target in the first four months of the year. Should Eurostat rule that Irish Water falls outside the government sector, this will automatically shave another 0.3% of GDP off the deficit. So we still expect the final end-year deficit to fall below 2% of GDP."

Related Articles


© Copyright 2015 by Finfacts.ie

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