Seán Ryan
Question:50 Mr. S. Ryan asked the Minister for Finance the figures for tax revenue, general Government balance and inflation; and if he will make a statement on the matter. [13711/98]
Written Answers. - Tax Revenue.
On budget day, my Department forecast that in 1998 tax revenues would be £15,167 million, there would be a General Government Surplus of 0.3 per cent of GDP and inflation would be 2.0 per cent.
In light of the buoyant tax revenues for the first three months of the year, I announced, in connection with the publication of the end-March return that tax revenues would be about £500 million ahead of the budget day projection. This would mean that the General Government Surplus should increase to about 1.2 per cent of GDP — some 1 percentage point of GDP higher than the budget projection. I will be reviewing this end-March projection at mid-year in connection with the end-June Exchequer returns.
With regard to inflation, the budget day forecast of 2 per cent average inflation was based on the usual assumptions of unchanged exchange and interest rates. I will be reviewing this forecast in the context of the Economic Review and Outlook publication in July.