The Department of Finance will this evening release the Exchequer Returns for the January-February period. The Exchequer posted a budget deficit of €1,142m in the opening month of 2014 compared with an overall budget surplus of €704m in January 2013. However, it should be noted that in January last year the Exchequer benefited to the tune of over €1bn from the sale of the Bank of Ireland Contingent Convertible Capital notes.
<p>
Tax revenues in the first month of the year totalled €3,130m, a drop of €644m on January last year. The Government is targeting an overall increase in tax receipts this year of 5.9%. However, the January figures were negatively impacted by the introduction of the Single Euro Payments Area (SEPA) system. Excluding, the SEPA effect, underlying tax receipts were up by about 5% year-on-year.
<p>
The Government is aiming for an Exchequer deficit of €9,595m in 2014, down from €11,497m in 2013. The General Government Deficit has been targeted at 4.8% of GDP this year, down from the estimated figure of just over 7.0% of GDP in 2013.
<p>
<b><I>It should be noted that €527m was collected on the first banking day of February compared to €80m in 2013. In the first two months of 2013 there was an overall Exchequer deficit of €936m. We are looking for a deficit of €2bn in January-February2014.
<p><h5>Alan McQuaid</h5>
Disclaimer: www.merrion-capital.com/disclaimer
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.