The Exchequer Statement for the first quarter of 2013 was published today (Wednesday, 3
rd April 2013) by the Department of Finance and the Department of Public Expenditure and Reform. The Exchequer Statement shows that the Exchequer deficit at end quarter 1 2013 stood at €3,695 million, €568 million lower than quarter 1 2012. Both total tax revenue of €8,816 million and the net voted expenditure outturn are in line with targets.
Commenting on the end-March Returns, the Minister for Finance, Mr. Michael Noonan, T.D. and the Minister for Public Expenditure and Reform, Mr. Brendan Howlin, T.D stated:
"The Exchequer Statement for the first quarter of 2013 highlights that the Government’s plan to restore order to our public finances is working. Tax revenues continue to grow in line with profiles and expenditure on public services is within Budget. Stable public finances are a necessary pre-condition for economic growth, job creation and the return of international confidence in this country. There have been positive developments on all three of these fronts, which can be seen in employment growth in recent quarters, the significant investment in Ireland by domestic and international companies and the successful return to benchmark bond markets last month.
While significant progress is being made in reducing the deficit it is clear further targeted consolidation is necessary to ensure the stability of the public finances. However, we will continue to ensure that the remaining consolidation is fair and minimises the impact on job creation and growth. The Stability Programme Update which is due to be published at the end of April, will take account of today’s returns, the recent GDP figures and other factors.
Finally, we have again adhered to the end-quarter Exchequer Primary Balance target set as part of the EU/IMF Programme, the tenth consecutive such target to be achieved".
With regard to the performance of tax revenues, Minister Noonan stated:
"Overall, the tax performance over the first quarter of the year is broadly in line with expectations, with headline tax revenues coming in marginally ahead of profile. The performance of income tax remains strong and when account is taken of once off items, income tax is up nearly 8% on an adjusted basis year on year. This strong performance is particularly noteworthy given that there has been no increase in income tax credits, rates or bands over the period and may be reflective of the stabilising labour market evident over recent quarters."
Commenting on voted expenditure in the first quarter of 2013 Minister Howlin stated:
"I am pleased that spending is being managed by Departments in accordance with levels decided by Government in the Budget. Expenditure overall is on target and in line with expectations – including in the big spending Departments. It is, however, early in the year and the Government is aware of the continuing need to keep overall expenditure on profile."
In conclusion, the two Ministers added:
"We are making progress but the fact remains that we still have a sizeable deficit in our public finances that we must bridge. We have to reduce our level of spending and increase the amount of revenue we collect in order to close that gap further and bring about renewed public finance sustainability".