Tax Tumble Tops Taoiseach's Timetable

Wedneday's revelation that tax revenues are in freefall will be at the top of the agenda in the first cabinet meeting in the run up to the first sitting of the Daíl later this month.

In July, the Government sparked outrage when they projected a tax shortfall of €3 billion for the year, leading to a host of cuts and budget slashing throughout various government departments.

However, over the Daíl holiday, the rapid slowdown in consumer spending has gone into underdrive.

The fall in stamp duty, and drop in capital gains tax receipts has left the Government's books over €5 billion in the red.

The Fine Gael spokesman on Finance, Richard Bruton, has hit out at Brian Cowen's government over the shortfall, accusing them of "going into hiding" over the crisis.

"In the time the Government have been away on holidays their July predictions for the economy and taxes have been shown to be 100% off target.

"It is now time that the Government to put away their golf clubs, suntan lotion and Dan Brown paperbacks and got a grip on the deteriorating Irish economy," he said.

Mr Bruton added that the deterioration in the public finances is accelerating, with August being worst month on record with tax revenue over 20% short of expectation.

The Fine Gael spokesman believes the Exchequer is heading for a deficit of €10 billion by the end of the year at best, and if the very bad numbers for August continue for the rest of the year, it will be closer to €12 billion.

Mr Bruton said: "This alarming swing from surplus to deficit is not due bad luck, it is down to Brian Cowen's reckless management of the public finances over the last four years. He has left Ireland exposed to enormous threats.”

(DW)