Exchequer Deficit Continues To Fall

Exchequer returns for the 12 months to the end of December 2014 have revealed that tax revenue was more than 3% higher than expected at the beginning of the year.

In total, the government said €41.3bn in taxes were collected in 2014, an increase of €3.5bn on 2013, while €42.2bn net voted expenditure was recorded, a fall of €848m on 2013.

Elsewhere, the Exchequer Statement for 2014 – published by the Department of Finance and the Department of Public Expenditure and Reform – shows an Exchequer deficit of €8.2bn, €3.3bn lower than 2013.

Excluding once off transaction, the underlying deficit is €4.7bn lower year on year.

Minister for Finance, Michael Noonan, said: "The exchequer performance highlights the underlying improvement in the Irish economy with increases in income tax and VAT of 9% and 8% respectively, year on year, arising from increases in the number of people at work and more money being spent in the domestic economy.

"Overall, the Exchequer returns show that the tax base continues to grow in line with targets and provides a solid foundation going into 2015. Budget 2015 is designed to support this recovery and I would expect that this strong exchequer performance will continue into 2015."

Minister for Public Expenditure and Reform, Brendan Howlin, added: "Spending continued to be managed in line with our fiscal targets. On foot of the better than expected tax revenues, Government agreed to provide some additional funding to support the continued delivery of health services.

"Around €100m extra was spent on capital projects around the country, such as the storm damage repairs arising from the severe storms earlier in the year. Monies were also directed to stimulus projects announced in 2014.

"As well as the stimulus monies and storm repairs, Government agreed to approximately €100m additional capital expenditure for 2014 for essential Transport and Garda fleet replacement."

(JP/CD)