Exchequer Returns 'Broadly In Line' With Expectations

A statement has been released by Finance Minister Michael Noonan and Public Expenditure and Reform Minister Brendan Howlin in relation to the end-March 2011 Exchequer Returns.

An Exchequer deficit of €7,066 million was recorded in the first quarter of 2011, comparing to an Exchequer deficit of €3,942 million in the corresponding period in 2010.

Commenting on the end-March 2011 returns, Minister Noonan said: "The Exchequer deficit in the first quarter of the year, at just under €7.1 billion, is broadly in line with my Department’s expectations at this point in the year and means that we have met the target set under the joint EU/IMF programme of financial support.

"Tax receipts in the period to end-March, at €7.5 billion were some €270 million above the same period in 2010 but €136 million or 1.8% below expectations. In the overall context, this is not a significant shortfall. However, the figures show a mixed performance in the individual tax categories. VAT and income tax have shown signs of weakness and given their importance, their performance will need to be closely monitored in the coming months.”

On a more encouraging note Minister Noonan added: "Corporation tax and excise duties have continued the good performance of last year in the opening months of 2011.

"While the weakness in certain taxes is a concern, the overall Exchequer targets set in the Budget remain valid at this point in the year. My Department is currently in the process of updating the macroeconomic and fiscal outlook in preparation for the submission of our Stability Programme Update to the European Commission by the end of this month."

Minister Noonan, and Minister for Public Expenditure and Reform, Mr. Brendan Howlin concluded that: "The Government’s decisions last week to restructure the Irish banks and to improve credit availability are necessary elements of economic recovery.

"These decisions combined with the implementation of the Programme for Government will put Ireland on the road to economic recovery. The Government is now moving on to the next phase of our plan, the Jobs Fund, which will create a more attractive environment in Ireland for investment and job creation."

(BMcN/GK)