Government reveals tax receipts surge ahead of Budget 2016

New Exchequer figures released on Friday regarding tax payments in September puts the Coalition in a very strong position to proceed with Budget 2016 firmly on the horizon.

The data shows that tax receipts last month beat the official target more than €300 million. It also shows that tax receipts in the first nine months of the year far exceeded targets from the Department of Finance by as much as €1.7 billion.

Subsequently annual tax receipts are on course to be above government targets by €2 billion by the end of the year.

Minister for Finance, Michael Noonan and Minister for Public Expenditure, Brendan Howlin believe there is no scope to increase the expansionary budget package beyond a range of €1.2 billion to €1.5 billion, which will be divided equally between tax cuts and spending increases.

“Overall, the tax performance for the first nine months of 2015 is ahead of expectations, with a very strong performance across all the major tax heads reflecting better than expected economic growth in 2015,” said Noonan.

“The tax performance has been very strong through the first nine months of the year, with tax revenues 5.8 per cent above target and up nearly nine per cent on an adjusted basis, in year-on-year terms.

“This provides a very solid base heading into the final quarter of the year and Budget 2016.”

In line with last week’s ESRI forecast and an acceleration of growth in the first six months of 2015, the Government now anticipates GDP growth for the full year to reach six per cent; however this projection may not be officially announced until budget day.

Date published 5 Oct 2015 | Last updated 5 Oct 2015