asked the Minister for Finance the detailed basis of the revenue computation in respect of Part III. Details of the Estimate of Receipts—Non-Capital, Tax Revenue, page 4, 1979 Estimates of Receipts of Expenditure for the year ending 31 December 1979, which show a revenue growth of income tax from £605 million in 1978 to £827 million; and the revised estimate for income tax for 1979 arising from the effects of the 1979 budget of 7 February 1979.
Written Answers. - 1979 Estimates.
214.
The estimate for the growth of income tax receipts in 1979 was calculated on the same general basis as in previous years.
It was based on macro-economic estimates and forecasts of relevant economic variables. These forecasts took account of the Government's targets for the economy as set out in the White Paper "Programme for National Development 1978-81".
Standard econometric techniques were then applied as appropriate to the macro-economic data, with adjustments being made where necessary in the light of special factors affecting the income tax receipts and the additional buoyancy that will be generated by the budget measures.
The post-budget estimate for income tax receipts in 1979 is £797 million, taking account of the tax concessions given in the budget.