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Dublin: 14 °C Wednesday 19 June, 2013

Exchequer returns show €2.9 billion deficit due, in part, to payment to the ESM

Spending at the Department of Social Protection was more than expected, whereas the Department of Jobs, Enterprise and Innovation continues to underspend.

Minister for Finance Michael Noonan. (file photo)
Minister for Finance Michael Noonan. (file photo)
Image: Niall Carson/PA Archive/Press Association Images

TAX REVENUES TO the end of October totalled €28.35 billion, according to the latest exchequer returns figures as released by the Department of Finance.

This amounted to €1,680 million, or 6.3 per cent, more than the same period in 2011.

While yields from VAT, income tax and corporation tax continue to surpass expectations for the year-to-date, corporation tax and income tax were down in October.

The take from excise duty was down for the fourth month in a row.

Commenting on today’s figures, Peter Value from Grant Thornton said:

The Exchequer figures for October are probably the weakest set of figures so far this year. It is typically a quiet month for tax receipts with November being a far more important month in terms of both income tax and corporation tax receipts.
However if the trend observed in October continues through to November this is going to have significant consequences for the December budget.

In figures

VAT was €106 million, or 1.3 per cent, ahead of target at the end of October.

Income tax take was €69 million, or 0.6 per cent, ahead of profile, with even greater returns expected in November due to the filing of tax returns by those who are self-employed.

The Department of Finance projects close to €2.5 billion in income tax being taken in this month as a result.

Despite corporation tax being €26 million ahead of profile in October, or one per cent, it is down 2.5 per cent year-on-year when adjusted.

Like income tax, November is projected as being a big month for corporation tax take, with close to €1.2 billion, or 30 per cent,  expected in November.

Excise duty is now €156 million, or 4.1 per cent, behind its projected target.

Stamp duty, capital gains tax, capital acquisitions tax and customs were slightly up at the end of October.

Expenditure

More is still being spent by Government than had been estimated. At the end of October, it was €424 million, or 1.2 per cent more than expected.

This was largely caused by overspends in the Department of Social Protection, which had a PSRI shortfall of €289 million.

The Department of Transport, Tourism & Sport also overspent, due to it making €36 million available to the National Transport Authority (NTA).

With the shortfall in PRSI taken out of the equation, the total overrun is €135 million.

Capital expenditure to the end of October was €336 million, or 14.2 per cent, below expectations, due in large part to the Department of Jobs, Enterprise and Innovation.

Servicing the debt

The cost of servicing the country’s debt was €6,180 million at the end of October, which was €35 million (0.6 per cent) less than the revised figures which were published by the National Treasury Management Agency (NTMA) today.

While the year-on-year costs of servicing the debt are up almost €2.5 billion, this has been explained by Government as being due to having made the Sinking Fund payment in March of this year when it had been made in November of 2011, and also by the use of €548 million from the Capital Services Redemption Account (CSRA), which was used for debt servicing purposes in the first 10 months of 2011.

With these two factors taken into account, debt servicing costs are up €1.3 billion (as opposed to €2.6 billion) when compared on a like-for-like basis with the first 10 months of 2011.

Exchequer balance

Exchequer deficit at the end of October 2012 was €14,072 million compared to €22,176 million for the same period last year. This drop is due to the settlement of the 2012 IBRC Promissory Note payment with a government bond, in addition to the fact that the banking recapitalisation payments of 2011 have not been repeated in 2012.

The Exchequer recorded a deficit in October of €2.9 billion. Contributing to this total was €1.3 billion of debt interest expenditure and a €0.5 billion payment to the European Stability Mechanism (ESM).

Read: Exchequer returns show tax take up but deficit at over €11bn >

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Comments (55 Comments)

  • Ireland, a bust country receiving bailout, pays into the ESM. You could not make this stuff up.

    Reply
  • So much for looking after the interests and welfare of the many over the few. If paying over money to unsecured rich bond holders and taxing those who cannot afford it over and over is democracy at work in Ireland then roll on communism. If I could I’d leave this country, surrender my passport and never return. Red thumb all you want

    Reply
  • I ‘ve said it enough times give them a travel pass to go to the D?il and also cut their turning up to work allowance firstly then make them pay tax prsi and usc on their expenses and then let being on a committee be an honour not a privilege.that should get down the Oireacthas bill I think

    Reply
  • This doesnt help either…
    TAXPAYERS will fork out more than €500,000 for each TD and senator next year, new figures reveal.
    The bill for Oireachtas members, including wages, travel expenses, assistance and general running costs of Leinster House, is estimated to be €115,590,000 in 2012.
    That works out at €508,000 for the 166 deputies and 60 senators when the €717,000 cost of members of the European Parliament — who are paid via Leinster House — are excluded.
    However, the overall Oireachtas cost is down from an estimated €127m for 2011.
    Despite “austerity” being the watchword when it comes to tax rises and spending cuts, the travel expenses bill for TDs and senators is set to soar next year to €5,247,000 from €4,839,000 this year.
    Other expenses and allowances for Oireachtas members will hit €7,765,000 in 2012.
    The salary bill for TDs and senators alone comes in at nearly €20m for next year, while travel costs for members of the Oireachtas is set to top €5m in 2012.

    Reply
  • Excise duty is one of the highest in Europe, it’s now counter productive. Same school of economics as VHI and CIE. He’ll still put up fuel and alcohol in the budget. Dope.

    Reply
  • It’s be interesting to see how much cost year in and year out for the pensions of past and present politicians.
    it must be a crazy amount considering b******ahern’s alone is up on ?100K yearly and coming directly from the state.

    Reply
  • So the political parties and a majority of the voters chose yes to the fiscal treaty in order to get access to the ESM funding, and now we’re already down half a billion quid in what’s likely to be the first of many such payments.
    Great job, Einsteins

    Reply
  • MrKnow 02/11/12 #

    I have a feeling there going to have a pop at another VAT increase. It has become a major “ole fateful” to revenue because its hard to get around not paying VAT. Motor tax and increases to the carbon tax so petrol and gas can be increased. Its scary to think we have at least 8 more main budgets and 6-7 mini budgets to go.

    Reply
  • fingers being pointed to welfare, OAP, and the bottom half of society. Nothing about the billions gone on bondholders and overpaid at the top, bankers still getting massive payouts even tough they constantly mess up and cost billions to the taxpayer. And thumb me down all you want you hypocrites, at the end of the day this country is speeding towards a brick wall and if live in ballymun or foxrock, earn 10k or 100k we are all going to feel the impact when it does crash.

    Reply
  • €1.3 billion in interest! Are they havin a giraffe?

    Reply
  • Ya and who,ll be forking out for that, the children of Ireland, the sick, the elderly, the working. But it’s alrite so long as the government and their banking buddies get to walk around on half a million euro a year?

    Why exactly are we being forced into austerity, yet ye,ve the cheek to tell us we need to tighten our belts, yer a fukin joke.

    Half a million quid a year for what exactly?

    If I got even half a that I’d be sorted for life!

    http://www.change.org/petitions/supporting-the-irish-nation-step-down-from-government

    Reply
  • Tommy C 02/11/12 #

    Its time to do something about the lower class we seem to have in this country. You know the cradle to grave welfare recipients and their kids who perpetuate the cycle. We have how many non irish people working in jobs like McDonalds and in other similar jobs. Why not cap migration and get our own doing these jobs?
    If theyve never paid tax then they shouldnt get any welfare. No allowances for the 3rd or subsequent child. Proper subsidised childcare so people can actually work when they have kids.
    Appraisals in the public sector so people can actually be sacked, receive warnings or get their increments depending on their work record.
    A new tax rate or two for those on 100k and up should help close the gap too. No more overseas aid while we are broke. A cut off point for welfare should be introduced too, no more migrants coming here getting our dole, no more welfare payments for kids not in the state, tighter immigration controls and try and get this country and its people back to some sort of sense of pride.
    We are in the sh*t and people are sinking further and further into despair except for those who never contributed yet still get free housing and welfare payments. Its the working person and those who lost their jobs who suffers in this country.

    Reply
    • Agree totally except for one point. There are no Irish working in jobs like McDonald’s because they thought they were to good for them during “the boom”. Now they would take it any day.

      Reply
    • You have some good points there but I don’t agree with all of them. There is work out there. People just don’t want to work hard for lower pay than they got back in the good days. I was in construction and since 2008 have worked in a low paid job, went back to collage and retrained and look forward to the future. It’s hard to make a living it doesn’t come as easy as people would like it to. And before I get red thumbs yes I’m in negative equity and that’s not going to go away any time soon. I guess my point is there is work out there maybe just not the work you want so get up get out and try

      Reply
  • Let’s face it guys. Ireland is run by a bloody useless, self serving, corrupt and greedy hierarchy. Filling their own pockets from the moment of their election. However These incompetent buffoons were put there by an electorate who would believe pigs could fly again and again. Unfortunately there’s no one else to vote for that has a clue. Talk away why don’t ya but it’s you and your families who’ll be taking it up the kyber for generations to come unless people stand together and say ENOUGH

    Reply
  • So I guess it’s time again to turn the screw on the children, elderly and poor mouth of Ireland isn’t it Noonan me old mate.

    Reply
  • is there anything to be said for another mass?

    Reply
  • So ” if the trend continues” as you quote it will have significant impact in the upcoming Budget? More softening up of the hard pressed taxpayer before the event seems likely.

    Reply
  • A civil war might be a solution 200 years ago but not the flavor of this century. Instead the Irish need to protest their views, get on the streets. If you sit back you accomplish nothing and just take what they give. Even if you do damage control its accomplished something. The government will be attacking the social welfare no doubt this year so the question is what can you do to prevent this or at least minimize the cuts.
    Our family packed the bags and left the country as couldn’t bare the thought of living there for the next decade even though we didn’t want to leave. We read about Ireland every day and can’t believe what that government is getting away with.

    Reply
    • Stop voting for them. Pick anybody but the bought and paid for parties. They are there to keep you quiet. Its is better not to vote than go give it to traitors. Your ancestors didn’t die to get a vote for you to waste on a fixed race where all the horses gave the same owner. The bankers.

      Reply
  • eoghan 02/11/12 #

    Cut public sector pay to bring in line with private sector,cut half these middle mangers in most departments,cut waste and tell Germany and merkel to stop bullshi ng around give us a deal or not.if the country has to borrow every year things ain’t going to get any better

    Reply
  • I ‘ve said it enough times give them a travel pass to go to the D?il and also cut their turning up to work allowance firstly then make them pay tax prsi and usc on their expenses and then let being on a ocommittee be an honour not a privilege.that should get down the Oireacthas bill I think

    Reply
  • Is this all in the 5 year plan? I wonder how that’s coming along anyway!

    Reply
  • Speaking of the rising debt and pretty much constant deficit (adjusted for once off measures for bank bond holder payments and bank repayments ofcservice fees the deficit is more or less where it was in 2009), the question is: where on the government books are the unfunded public sector pension liabilities? The answer is: nowhere, and that is the elephant in the room and the root of the next fiscal crisis.

    Reply
  • Una Dev 03/11/12 #

    This is bad news because it will only serve Kenny’s justification to pay the bondholders. It will also sustain the gravy train. Under-declaration of tax liabilities is often used as a strike against the Government in many other countries. If Ireland is to grow, it must stop paying bondholders.

    Reply
  • I’m rereading FG’s extraordinary crap leaflets on the fiscal treaty, no mention in their ‘facts” section on having to hand over this money…consistent with the lies though – kudos.

    Reply
  • Where has my comment gone?

    Reply
  • What was the problem. Not the first time

    Reply

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