Dáil Éireann Debate, Wednesday - 28 April 2010
104 Deputy Catherine Byrne asked the Minister for Finance if the trends in the Exchequer returns to date in 2010 give confidence that the end of year targets will be achieved; and if he will make a statement on the matter. [17129/10]
View answer112 Deputy Kathleen Lynch asked the Minister for Finance if he will comment on the end-of-March quarterly Exchequer returns which showed a revenue shortfall of more than €1.2 billion compared to the same period last year; and if he will make a statement on the matter. [17197/10]
View answerI propose to take Questions Nos. 104 and 112 together.
At end-March 2010 the Exchequer deficit was €3.9 billion compared to €3.7 billion at end-March 2009. This was broadly in line with my Department's expectations for the first quarter of the year. Tax receipts at €7.2 billion, were 15% below the level collected to end-March of 2009 and €266 million or 3.5% below the profile for the period. A significant year-on-year decline in tax receipts was expected in the initial months of 2010. This decline is expected to moderate as the year progresses with overall tax revenues forecast to end the year 6% down on 2009. The tax revenue target for 2010 is just over €31 billion. My Department's budget day forecast anticipated that the economy would return to growth in the second half of the year and that this would have a positive impact on tax performance. More recent forecasts from others would support this view of the economy.
Net voted expenditure at €10.7 billion was down some €1 billion year-on-year at end-March. This is clear evidence that the expenditure reduction measures introduced by the Government are having the desired effect in controlling public expenditure. Net voted expenditure was down €225 million on profile to end-March, largely due to timing issues. Departments are expected to adhere to the allocations for 2010 as set out in the Revised Estimates Volume. Overall, tax and expenditure performance to date are broadly in line with the budgetary plan as set out in Budget 2010. My Department continues to analyse the emerging trends, however, at this stage of the year I have no reason to change the outlook for the year as a whole.
