Paul Connaughton
Question:27 Mr. Connaughton asked the Minister for Finance the areas where Exchequer returns in the first quarter of 2003 have not matched the expectations outlined in his Budget Statement. [9647/03]
Written Answers - Tax Collection.
The targets set out in budget 2003 relate to a full year. At the end of the first quarter, the Exchequer position, including expenditure and tax receipts overall, are in line with expectations. In overall terms, tax receipts to end-March were in line with the profile published in January. Tax revenue, at €6,956 million was 22% of the budget day target. Year-on-year, tax receipts were 11.9% higher than the same period in 2002. The full year budget target for tax revenue is an increase of 8% over 2002.
Individual tax heads varied in performance. Stamp duty and VAT performed particularly well. Corporation tax and income tax performed less well. To end March, income tax receipts were down 6.8% on the same period last year and a budget target of an increase of 2.7% for the whole year. Corporation tax to end March was 31% below profile. However, it was significantly up on the same period last year, an increase of 146.4%. This compares to a budget target of an increase of 5.5% for the whole year. The large year-on-year increase is due to an advance of preliminary tax payment date. However, it should be noted that the months of May, June and November all have much higher corporation tax targets than the cumulative amount collected in the first three months of 2003. The amounts collected in these months will influence 2003 prospects much more than will the amount collected in the first quarter.
Public spending to end-March was within profile. The Revised Estimates for public services published last February provided that net voted spending on services will be €30.8 billion or 6.7% more than provided in 2002. Year-on-year expenditure to end-March is 11.8% higher than the first quarter of 2002. Net voted spending on services to end-March was €6.83 billion, 22.2% of the 2003 Estimate – some €440 million below the profile for spending by Departments and offices to end March. However, this divergence is explained by timing factors. As I said in my press statement of 2 April, there are some spending pressures emerging but it is up to each Department to manage within their 2003 allocations.