Minister Donohoe welcomes solid Q2 2018 Exchequer Returns
- Exchequer deficit of €823 million. This compares to a surplus of €2,485 million in the same period last year. When adjusted for the impact of the AIB share sale in June 2017, the Exchequer balance shows an underlying annual decrease of €323 million.
- This decline in the Exchequer balance was primarily due to increases in investment in infrastructure and public services and was somewhat offset by increased tax revenue.
- Tax revenues of €24,941 million were broadly on profile (up 0.7%) and up 5.4% (€1,276 million) year-on-year.
- Total Gross voted expenditure of €29,519 million to end-June was €107 million was marginally below profile (0.4%) and up €2,075 million (7.6%) on the same period in 2017.
Finance Minister Paschal Donohoe welcomed todays returns, saying:
Today’s Exchequer returns for Q2, and cumulatively for the first half of 2018, represents solid performance underpinned by an improving economy. This in turn translates into strong revenues which are funding the delivery of our public services and investment in key infrastructure. Today’s figures provide a basis for the achievement of Budget day tax forecasts by year-end.
Tax revenues have performed robustly and at €24.9 billion represent a 5.4 per cent year-on-year increase, which is slightly ahead of expectations. Reflecting our broadly-based recovery, most tax headings have recorded annual growth.
On the spending side, gross voted expenditure at €29.5 billion is up 7.6 per cent reflecting the Government’s commitment to delivering services and infrastructure that meet critical social and economic challenges. This outturn provides a good platform for the remainder of the year. However, we remain vigilant to the potential challenges we face, including Brexit. We will continue careful management of the public finances, including the focus on reducing our debt burden and the continuation of competitiveness-oriented policies.