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Dublin: 10 °C Saturday 25 May, 2013

Exchequer deficit reduced by €10bn in 2012 to €14.9bn

VAT and corporation tax recorded surpluses, while income tax and excise duties recorded shortfalls.

Image: Eamonn Farrell/Photocall Ireland

NEW FIGURES RELEASED this evening show that Ireland has reduced its deficit to €14.9 billion at the end of 2012, compared with €24.9 billion in 2011.

The two main reasons for the decrease were the settlement of the 2012 IBRC Promissory Note payment with a government bond and the fact that the July 2011 banking recapitalisation payments were not repeated last year.

The figures also show tax revenue in 2012 at €36 billion, up 7.7 per cent on 2011 and €271 million ahead of profile.

Of the four main sources of tax revenue, VAT and corporation tax, recorded surpluses against target in 2012.

VAT intake was €176 million more than expected at €10.2 billion overall in 2012 which was described as “a very positive performance” by the Department of Finance with VAT having gone up from 21 per cent to 23 per cent last year.

A total of €4.2 billion was paid to the Exchequer in Corporation Tax last year, €196 million more than the government had anticipated.

Income tax and excise duties recorded large surpluses for December but over all were below what had been expected for the year with income tax €124 million lower than expected and excise duty €108 million below expectations.

December’s tax receipts came as a surprise, coming in €440 million above profile. Budget 2013 in early December had estimated a €210 million shortfall.

Health and welfare overspends

The majority of Departments came in at or below profile in terms of expenditure.

However, pressures on the Department of Health (which spent €12.7 billion overall) and the Department of Social Protection (which spent €13.9 billion) were offset to a large extent by savings in other areas.

Spending in health was €270 million over budget and social protection (welfare) was €560 million over budget. The two departments accounted for €26.9 billion of the €44.4 billion the government spent last year.

Over €3.4 million in Exchequer capital spend includes €107 million in capital carry over, which will be available for Departments to spend into 2013 but is included as Exchequer expenditure in 2012.

The Minister for Finance, Michael Noonan and the Minister for Public Expenditure and Reform, Brendan Howlin, said the end of December Exchequer returns shows the “continued improvement we are making”:

For each of the nine quarters since the Programme commenced in late 2010, we have successfully met all of these targets.We cannot lose sight of the fact that we continue to spend more than we collect in revenue.

The Exchequer deficit, at close to €15 billion in 2012, is too large and the Government remains committed to reducing it further in the coming years.

The two ministers insisted that “overall economic confidence is returning” and cited “positive” retail sales from the Christmas and New Year and export data as indicators of this.

But Sinn Féin TD Aengus Ó Snodaigh said: “Today’s figures show that the economy continues to flatline. Clearly austerity is not working and 2012 was another year wasted on this policy.”

- additional reporting from Hugh O’Connell

Read: Budget 2013: Here’s what the experts had to say about it

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Comments (52 Comments)

  • Lets party like it’s 2006!!

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  • “€36 million” is a typo

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  • €14800000000. This has to be brought to €0 by 2015.
    That’s impossible, why is this not being discussed in the media?

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  • Makes good reading alright. Not one semi-state company returned a dividend matching that of 2011, Coillte Teoranta dividend down 80%. Note 5 Non-Voted Current Expenditure is my favourite “Payments to Political Parties” up from 2011 to 13.8 million, Election Postal Charges 1.5 million zero in 2011, Election Expenses down this year to 25 million without even an election.Salaries, Pensions and Allowances down a little to 40 million. Oireachtas Commission gets 105 million down from 130 million in 2011. That just over 240 million euros, is this why enda is laughing at us?

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  • At least the roads are still good, and our health system is excellent .. Oh wait..

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  • 36 billion is including how much we alao gave the banks. So realistically it’s only 2 billion. Wow! And that’s down to screwing the average joe not the fat cat bankers, politicians, bond holders or senior civil servants

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  • We will need it all back to pay for mental care for our young struggling youth take a bow

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  • Jaysus….would ya look at the head on her….

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  • This has nothing to do with the article I know.

    But
    Doesn’t enda kenny have a face you just want to shove into a wall.

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    • The way people’s lives are being ruined I wouldn’t bet against it happening

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    • Ciaran
      No The Taoiseach doesn’t have a face you want to shove into a wall unless you have the violent tendencies of a Provo or a psychopath.

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    • Mick,

      I’d say you’re some craic!

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    • Or you’ve lost your job and your home!

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    • Your generalisation is just ridiculous.
      But sure what can we expect from a staunch blueshirt.

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    • Only again and again..

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    • Ciaran, He has a face your foot would love to meet on a dark night and the grin would show you the way!

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    • ciaran this bum is laughing at us the best thing he can do is resign.

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    • Ciaran
      You’re response is clear evidence of Political preference and therefor you’re not simply a member of the great general public out there expressing an opinion. Instead you masquerade as one and denigrate ( check dictionary ) democratically elected Taoisigh with disturbing threats of personal violence. When you get a backlash from someone who finds that behaviour offensive and redolent of an uneducated and thuggish pert of our society you resort to further attack. Behave yourself. Your Left Wing Party wouldn’t approve either.

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    • One really does have a high opinion of ones self.
      It’s not a threat of violence and a mere expression of how the majority of the country is feeling.
      And you suggest that it’s clear who my political affiliations side with.
      Your making assumptions on a comment that describes my nature.
      I’ve no time for any political parties in this country.
      Their all crooks,every last one of them.

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    • No, it doesn’t. To the best of my knowledge, Enda is very well liked in political circles at home and abroad. He has the highest personal ratings compared with all other political leaders in this country (according to polls) and leads a party that despite severe austerity budgets others claim are not working is ahead of all others. You might be part of a small few that have ‘violent tendencies of a Provo or a psychopath.’ as Mick put it.

      Its really a hand to face moment when you read daft comments that are either personally insulting towards others or, like above, suggest an urge to have violent tendencies towards someone. Is it any reason why people are committing suicide because of bullying when there appears to be little control towards people hiding behind pseudo names and launching personal attacks towards people and like above suggest violence urges?

      In general society seems to be full of people, either particular members of society, particular groups of footie fans, or general folk who seem to want to beat people up like that poor lad from Monaghan resulting in their death. If you don’t like someone, get on with it and don’t get personal towards them.

      Forgive the rant but seeing as Ciaran seems to be given the freedom to go off topic and bring in personal violent suggestions, than I don’t see the problem with this post. It appears my first attempt at posting a similar one was removed, and I can’t exactly figure out why. Strange post to be removing seeing the content of others that are let up without removal.

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    • Who is committing suicide due to social media bullying? Not Shane McIntee anyway as there no evidence of that. Just speculation from the government who would like to clamp down on our right to voice out opinions.

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    • Mark Stewart; I don’t think the government feel in anyway threatened by the silly remarks people make behind pseudo names. This government is under any electoral threat or ‘revolt’ from the internet. The internet is slowly moving towards preventing one from commenting online without linking to your Facebook/Twitter but that’s not sufficient as many people create fake accounts. Your right to anonymity and freedom of expression is fine to a point. I think this is the point the government are finally getting up of their backside and making – many have been calling for action for ages. It wasn’t the government who suggested Shane McIntee took his life because of social media – it was his family and friends who gave their own evidence as to what was going on in Shanes life.

      A number of kids have taken their life from bullying online. Its a widely known problem, in particular with one website.

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    • So true!

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    • Kevin, an excerpt from a recent article

      One fellow Fine Gael TD said: “There was an impression that Shane McEntee was under a lot of pressure recently.

      “It was the usual types of pressures a lot of politicians are under but he was really feeling it.

      “He received a right hammering lately on the radio – it was really unfair.
      Then there was the heavy criticism about his respite care comments.”

      The colleague added: “Parts of social media give a voice to nutcases who are full of anger and spit out vitriol.”

      A Fine Gael colleague said this ie the Govt. Friends and family did not give evidence, they gave their opinions as there was no suicide note.

      Yes online bullying may have caused some kids to take their lives. This is not what we are discussing here. We’re talking about citizens expressing their anger and discontent to the people they elected to represent them. Seeing as they ignore people’s emails to them, social media seems to be the only way to get the message through.

      In response to your earlier comment that Enda is very popular amongst other politicians, this is part of the problem. We don’t want him to be. We want him to be a thorn in their side because he is fighting every day to get a decent deal for Ireland. He should be popular with US not them.

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    • Get over yourself, no violence occurred. Just a suggestion that Dame Enda has an annoying face.
      That looks like it should meet a wall at speed.

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    • Thanks dave.
      Apparently I’m a member of a paramilitary organisation and that I put comments up as to hurt people and thus leading to these people to take their own lives.
      I personally know the affects suicide has on families and friends.
      If a politician can’t take criticism on social media or otherwise,he/she should not be in politics.
      I was just venting anger at politician who lied to us and has no idea of the hurt families are going through.
      I don’t hide behind a fake name.this is my real name.
      And if I got the opportunity I would express my discontent at this government in person.
      (Not violently as the blue shirt brigade has said)
      Words and actions are completely different.

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    • Ciaran
      I believe that your latest Posting is indicative of someone with a severe underlying pathology in that they have nom insight into their thinking or behaviour and your admissions would ordinarily be taken as threatening or in some cases as suggesting an unsound mind. Wanting to shove someone’s face into a wall Ciaran is something that happens in the back wards of locked a psychiatric wards and not in normal social discourse. Thinking these thoughts and then writing them down on a public forum such as this confirms the issue.

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    • Thanks Michael.
      Ill have myself committed as soon as possible.
      I’m clearly insane.
      By the way can I borrow your big word book please.

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    • Kevín,
      What you mean to say is Enda Kenny is well liked in Young Fine Gael circles.
      If Enda is so bloody good, why did it take FF imploding to get him and his party elected and he couldnt even get a majority then. How come he couldnt win against Bertie for all that time (not saying FF are any better but why couldnt FG beat FF if they are that good?
      What about all the broken election promises?
      Why did his party try and eject him before the last election and then hide him away when they couldnt even pull that off, and make him spout that 5 point plan bullshit (saw Mitt Romney try that one too) instead of debating anybody?

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  • All the people that left the country during the famine done it for a change of scenery to ,do you think

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  • The blue shirts are aggressive tonight on the red thumbs. If you are a blue shirt supporting Kenny in destroying rhis country give me a thumbs down. Show us decent citizens how little you think of your country supporting this dreadful taoiseach. Seen that picture of kenny makes me sick.

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    • Doing a pretty good job by the looks of things. Not even two years into government and the deficit is reduced, tax intake is looking good, considerable job creation, passing tough austerity budgets and keeping within the EU/IMF agreement and targets, a country that is generally happy and isn’t rebelling against the tough measures (and lack of action from the top in terms of finances), an exit from the bailout this year looks likely – the first to do so, unemployment rate steadying / decreasing for the first time since the recession began, growth in the economy, over subscribing on the bond markets (a successful return for the country and the banks) – the list goes on.

      Despite the negativity and broken promises, despite the lack of action from the top town and despite the opposition insisting we are doomed – Ireland is looking good.

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    • Kevin, wake up … our GNP is decreasing, through continued austerity budgets. The article clearly states that the only reason the artificial deficit has decreased is due to reduced bank payments. We will be paying back last years deferred bond-holder payment in May this year. Its circa 3 billion euro. Yes, you can go and pat yourselves on the back for creative accounting, but the bottom line is the GNP, unemployment and emigration levels. All 3 indicators are in the toilet. Everything else is window dressing. The people are suffering and you are patting yourselves on the back. This is why you are going to be decimated at the next election.
      Any chance your party will return the 3 million euro the Supreme court found you had spent illegally recently? Try doing something useful for a change.

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    • This is a dictatorship we are now living in . Get real Please. This idiot taoiseach will not do interviews ,will not be honest . I can not believe he has so many people taken in with his twaddle. Wht is that ? Can some one please explain to the rest of us why so many people believe his asinine ideas. He is as bad as any of the last two taoisigh and equally if not more hated than them too.

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    • Cal; GNP grew by 4.3% in the three months from April to June. That was a sharp and unexpected improvement on the fall of 0.1% in the first quarter. Compared with the same time a year ago, GNP rose by 2.9%. For the third quarter, it decreased by 0.4 per cent. Compared to the same quarter last year, GNP was up by 3.7 per cent. As for the re-payment of the bondholders – of which most were paid – that remains to be seen. Work is ongoing on debt relief and these issues should be ironed out. You can speculate, of course, on both of those but neither are fact.

      Unemployment is decreasing and for the first time more jobs are being created compared to being lost. Indeed, emigration has increased but we are not sure exactly of the figures in terms of how many of those who left were on Social Welfare payments (I say this because I know a number of people employed who have or intend to leave, some for the lifestyle and others in search of better paid jobs in a better economy).

      As for being ‘decimated’ – who knows what will happen between now and the election. The government are doing pretty good in less than two years so I suspect it will be relatively positive by the time an election is due. Besides, polls suggest they are comfortable and Sinn Fein are losing ground to Fianna Fail. That has to be a kick in the teeth, as a Sinn Fein supporter? After doing so well, gaining so much ground ahead of the party that put us into this mess and a government party to slip and fall down the pecking order of the people?

      I’d be in favour of the government parties re-paying the money they took from the state coffers for the referendum. Without a doubt and I told you that before. :)

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    • Kevin, you are talking about GDP, not GNP .. damn, no wonder things are continuing to get worse .. FFG cant tell the difference between the two

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    • You’re delirious Kevin..unemployment is down? It’s not, even with the 120k odd that have left. People are generally happy? Who are you talking to? The 5% with money? Tax intake is up? How is that good news for us? Take a look at the bigger picture. People have been impoverished and enslaved for generations and our natural resources sold off to pay a debt that’s not ours and our Government stand idly by and do nothing about it. How is anything you said ‘good news’ for Ireland? Ridiculous..

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    • Kevin
      A good solid and honest answer but not good enough for our Left Wingers. Please don’t let facts get in the way of their bile and venom. They’re as uncomfortable on economics as they always were and doesn’t it show.
      With a very proposition opposed and every forward step denigrated and every courageous decision of Government sneered at , all they see is a growth in the popularity of Fianna Fail at their expense. They must be sick at the thought.

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    • As usual Michael, talking without saying very much.

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  • All the people suffering to keep FG’s EU buddies happy, bend over Irish citizens and Enda will give it you!

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  • They must be very old to have Southern Ireland accents! That state only existed for a while in the early 1920’s!

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  • Who deleted Michael j Collins libellous comments? Thankfully I managed to save and print them first! Now let’s see how committed Fine Gael are to stopping cyber bullying.

    Reply

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