October Exchequer figures: Deficit Balloons to E4billion

[kerrynorth]

Due out later. Will be interesting to see as along with the November figures they are the 2 biggest in the tax year. A lot of capital taxes fall due on October 31st as well as the initial self-employed deadline other than online returns. These figures will set the agenda for the budget.

The October returns show tax revenue E630 below profile and the exchequer deficit is running at close to E4billion from over E345million last year. Excises, VAT, Stamp Duty and CGT are running behind forecast. Income Tax is up as is Corporation Tax marginally.

[kerrynorth]

Due out later. Will be interesting to see as along with the November figures they are the 2 biggest in the tax year. A lot of capital taxes fall due on October 31st as well as the initial self-employed deadline other than online returns. These figures will set the agenda for the budget.

The October returns show tax revenue E630 below profile and the exchequer deficit is running at close to E4billion from over E300million last year. Excises, VAT, Stamp Duty and CGT are running behind forecast. Income Tax is up as is Corporation Tax marginally.

On the expenditure side Current and Capital spending is coming back into line less than E200million above budget but it is the cost of debt servicing and other expenditure that has grown.

[youngdan]

Kerrynorth. This might be a good time to check my latest prediction on the oil thread.

[CookieMonster]

I thought not so long ago the deficit was extimated at around €900 million.
Did I just make that up?

[Watcher]

Due out later. Will be interesting to see as along with the November figures they are the 2 biggest in the tax year. A lot of capital taxes fall due on October 31st as well as the initial self-employed deadline other than online returns. These figures will set the agenda for the budget.

The October returns show tax revenue E630 below profile and the exchequer deficit is running at close to E4billion from over E300million last year. Excises, VAT, Stamp Duty and CGT are running behind forecast. Income Tax is up as is Corporation Tax marginally.

On the expenditure side Current and Capital spending is coming back into line less than E200million above budget but it is the cost of debt servicing and other expenditure that has grown.

Debt servicing has grown? How did that happen? Did Cowan decide to pay down a huge chunk of it recently, or has he increased the debt? Thought I heard FF saying that they were going to irradicate the National Debt completely within a short time.

Regardless of how it is dressed up, this is the storm on the horizon.

[andrew]

Debt servicing has grown? How did that happen?

Could it be linked to a rise in interest rates?

[rockofcashel]

I'm kind of getting a Shrek 2 moment from these threads..

Are we ************************ed yet ?

Are we ************************ed yet ?

Are we ************************ed yet ?

etc etc

[meriwether]

Im going to sit down and examine this logically.
Income tax up- employment is robust?
Corporation tax up- ditto?

Now the downs:

CGT- is this important? How indicative of economic wellbeing is CGT?

Stamp duty: House prices down. Clearly more than the 3.3% estimated recently. Houses not being sold?

VAT: Consumers not spending?
Excises: Consumers not spending?

So, the fundamentals look OK- employment. But the housing problem, and the effect its having on consumer confidence is doing the damage?

[Watcher]

Debt servicing has grown? How did that happen?

Could it be linked to a rise in interest rates?

Yes, yes it could.

[kerrynorth]

Debt servicing has grown? How did that happen?

Could it be linked to a rise in interest rates?

They sold E9billion of debt a couple of weeks ago at the height of the credit crunch. The timing was really unfortunate with the rising margins on debt even with Ireland's credit status.