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THE IRISH EXCHEQUER recorded a surplus in the first month of 2013, in spite of a fall in overall revenue – thanks largely to the proceeds of a sale of capital notes in Bank of Ireland.
Figures published by the Department of Finance show an increase in tax revenues of almost €109 million, or just under 3 per cent, but non-tax income fluctuated significantly and ended up falling by €122 million when compared to the equivalent period last year.
Income tax receipts for January rose by €126.5 million, to €1.387 billion, while VAT income rose by just under 1 per cent to €1.74 billion. Meanwhile, excise duty rose by over 10 per cent to €318.7 million.
The figures are given an unfairly unhealthy complexion, however, by a major fluctuation drop in corporate tax returns in January 2013 when compared to January 2012. Only €18.6 million was received last month, compared to just under €271 million this time last year.
Last year’s corporation tax figure was artificially inflated by a delay in a large payment that was actually due in December 2011, however, and the likelihood is that these receipts will even out over the course of the year.
In non-tax income, there was a significant drop in fees paid by banks in exchange for cover under the State guarantee scheme, which dropped by just over a quarter to €210.4 million. Miscellaneous small payments fell from nearly €55 million to just €158,000.
However, other payments increased significantly: minor receipts collected by Departments and other state bodies rose from €1.1 million to €4.8 million and fees from the property registration authority rose from €1.9 million to €2.9 million.
Unusually, the State collected no motoring fines in January 2013 – having picked up €420,000 in January 2012 – but in a manner similar to corporation tax, this will probably be made up in future months.
On the spending side, net ‘voted’ spending – governed directly by the Budget, as opposed to catered for in other Acts of the Oireachtas – rose by 4.1 per cent to €3.874 billion, which was attributed to the timing of public service and social welfare paydays.
Public servants are usually paid every fortnight, with money arriving in employee accounts on a Thursday. Quirks of the calendar meant there were three such paydays in January 2013, when last year’s only contained two.
In all, the Exchequer returned a surplus in January 2013, of €704 million. This is partially as a result of a €1.057 billion windfall from the sale of contingent capital notes in Bank of Ireland, and can also be attributed to a significant decrease in capital spending.
The cost of servicing the national debt was €568 million, down from €750 million in January 2012 due to what the Department of Finance described as “a combination of technical and timing factors”.
Peter Vale, a tax partner at accountancy firm Grant Thornton, said the increase in income tax receipts was a “big positive” and indicated stability in the labour market, but expressed concern at the VAT figures, which would reflect retail sales from November and December.
“VAT receipts were a mere 0.9 per cent ahead of last year, despite the increase in the VAT rate to 23 per cent from 21 per cent in the comparable period,” he said.
“This is perhaps explained by the relatively weak retail sales over the Christmas period reported last week.”
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Begrudgers , acknowledge for once that the Government is doing a great job steering us to recovery ! This is a brilliant result, given the mess they were left to deal with. Also strengthens our hand in dealing on promissory notes.
No one doubts that FF left the most septic mess that any Govt. has ever had to face but people are so peeded off that the current Govt. has not engaged in wholesale reform. It is all about protecting the same vested interests that stuffed envelopes for the last gang.
@Rory… please tell me you are being sarcastic….
No sarcasm Tom. Do you not realise what this means??
I really fear for the country if he’s not! People used to say things like this about FF…..and we know where that got them.
?????????????????????????!!!!!!!! Please explain..
Isn’t it interesting motoring fines are mentioned as Exchequer income? I thought fines were given out for safety reasons and not just more income to the government? And who says speed cameras are not there just to make money?
Journal, that’s twice ive replied to Rory and comment has been misplaced?
Rory, the taxpayer is doing a great job. The teachers, publicans and solicitors who govern us are collectively useless.
Your right about the teachers etc its frightening if you look them all up in Wikipedia what there skill sets are, really frightening! If you think there running a country and No offence to teachers they do a great job as teachers.
FG loyalty is to Berlin and the bond holders NOT Ireland so don’t think it’s a bit co incidental on the same day about govt tensions this supposed good news is released.
This fiscal story is
Just to soften public opinion in regards to not getting the deal that FG promised will not materialise.
Al thats shit
Genuine question. Why would they be loyal to Berlin? What is their motive?
@The Mule… Ever heard the saying, “don’t bite the hand that feeds you”?
What do they feed our FG politicians. I don’t want to hear another vague reference to possible corruption, I want a fully formed theory.
There seems to be a lot of ‘technical & timing factors’ in this simply wonderful news! There must be some mistake though Rory as I’m not enjoying or seeing the benefit of this fiscally fantastic story & over the next year I expect to have even more of my hard earned money taken to pay the govts inflated salaries & the Germans / bondholders gambling debts. Forgive me for not feeling the love on this spin / fairy tale.
Exports up for the Multinationals but the tax take is down from them…..wonder why that is.
I rarely look back, and would be generally an optimist.
However, when are we going to reduce
the obnoxious pensions that are paid to Bertie agus a chairde.
This state can’t progress credibly, until
the changes we know must be made, will be made. Or else the troika may become a long term appendage to this state.
Excellent point. Why is FF so silent on excessive pensions – 3 or 4 times a normal wages- paid to people who Berte Brian etc who destroyed the Irish economy!
I noticed that public servants are paid fortnightly rather than what I would think is the norm elsewhere of monthly. Would this not be an obvious and sensible place to save money. Paying monthly would also make these figures less volatile.
One flew over the Cuckoo’s nest…
My god..
Income tax up 126 million, vat up 17m excise up 31m, just these 3 amount to over 2 billion surplus for 2013. To make figures look bad bank fees are surprisingly dropped and there is an “ANOMALY” in the corporation tax take . This despite massive growth in exports and trade surplus.
We are being played as fools. Lets hurry and screw the public servants before they know things have improved.
The figures are up cathal, but the percentages seed up less than the percentages by which they raised tax by. They are consistently depressing the domestic economy. We are well past the point of diminishing returns!!
Has there been any info on what ‘profit’ they made off the household charge? As in, penalties for late payments?
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