Jan O'Sullivan
Question:84 Ms O'Sullivan asked the Minister for Finance the projected end of year budget deficit or surplus based on the latest information available to his Department; and if he will make a statement on the matter. [14500/02]
Written Answers. - Tax Yield.
Bernard J. Durkan
Question:91 Mr. Durkan asked the Minister for Finance if he has concerns regarding current public spending trends; if anticipated revenue receipts are in accord with budgetary projections; and if he will make a statement on the matter. [14451/02]
I propose to take Questions Nos. 84 and 91 together.
The budget day forecast for the 2002 Exchequer balance is for a surplus of €170 million. This is still the target although it may be achieved by a lower revenue performance than forecast offset by savings and other receipts not available at budget time, including lower than expected EU budget contribution and the proceeds of the sale of ACC Bank.
The most recent figures for Exchequer receipts and expenditure were those for the period to 31 May 2002 published on the Department's website on 5 June, which show a surplus of €56 million for the period to end-May.
While the performance of individual tax and non-tax subheads will vary, receipts will improve in particular as the full impact of the budget revenue-raising measures is felt. The 2002 budget change to corporation tax payment dates will enhance receipts from June onwards. The increase in the standard rate of VAT from 20% to 21% in March of this year began to be received in May.
Similarly, while there are different levels of spending to date this year by different Departments, a number of factors including the 1% lump sum which was paid in April and the earlier payment of social welfare benefits have pushed up the year-on-year percentage increase above what it would otherwise have been. Notwithstanding these timing issues, there are pressures on expenditure in some areas such as demand-led schemes in the health area, capital expenditure on national roads and prison officer overtime, for which additional funding will be provided. Departments have been required by Government to take appropriate measures to ensure that expenditures are controlled over the remainder of the year and to make appropriate adjustments to ensure that the final overall outturn for expenditure will come in in line with the original plan for the year as whole. This is a normal procedure following a mid-year review of trends to date.