Minister for Finance Pascahal Donohoe and Minister for Public Expenditure and Reform, Michael McGrath following behind
This afternoon.
Department of Finance.
Latest exchequer figures reveal the year-on-year decline in the overall tax take to be just just 3% so far this year.
Via RTÉ:
The Department of Finance had forecast in April that State revenues would fall by 16% this year due to the pandemic disruption.
But a strong pre-crisis start to the year, better than expected income tax take since and a surge in corporate tax receipts meant revenues were little changed in the first six months.
An unprecedented level of stimulus to soften the economic hit pushed Government spending up 24.9% year-on-year in the first nine months and the Exchequer deficit to €9.4 billion, today’s figures show
Minister for Finance Pacschal Donohoe said:
“They show that although receipts are better than previously expected, much of the over-performance relates to corporation taxes – a revenue stream we cannot rely on over the medium-term.”
Exchequer deficit reaches €9.4 billion in September (RTÉ)
massive amounts of covid payments and related VAT must also have helped…
with someone in the background pulling the budget out of their hole
The covid payments primarily going to low income workers is a huge reason for this. They weren’t paying much tax to begin with given their low income, and they’ve also likely spent near 100% of their covid payments every week – so its all going straight back into the economy.
Its almost like giving money to poor people is good for the economy….
Unfortunately, the neoliberals in Australia are reducing the equivalent payments and are about to give tax cuts to high income earners. This is against all of the advice of economists.
No new taxes doesn’t mean not adding extra percentages on existing taxes.
Loads of ‘green’ taxes I’m sure.
LPT going up in Cork