3.7 billion deficit in Q1 - Lenihan says economy is "weak"

[David Cochrane]

An Exchequer deficit of €3,721 million was recorded in the first quarter of 2009 compared to a deficit of €354 million in the same period last year. Tax revenue was down year-on-year by €2.6 billion or 23%. Total net voted expenditure was just over €680 million or 6% above expenditure levels for the same period of last year.

Commenting on the first-quarter returns, the Minister for Finance, Mr Brian Lenihan, TD said that:

“Today’s figures are further evidence of the weakness of the Irish economy and of the associated pressures on the public finances.

As the economy has continued to slow, we have seen significant increases in the numbers out of work. While expenditure has been successfully contained across most areas, the additional welfare pressures mean that Social Welfare payments are now running at a rate of 12% above the same period of last year. Over the coming months further pressures will likely emerge in this area of Government spending.

In terms of taxation, all areas of taxation are now significantly down on the same period of last year. The main four tax areas – VAT, Income Tax, Corporation Tax and Excise Duties are now collectively 18½% down on an annual basis.

At the start of the year, the 2009 estimate for tax revenue was set at €37 billion. That represented an annual decline of 9¼%. At end-February my Department expected, on a no policy change basis, tax revenue of the order of €34 billion in 2009. This remains the Department’s current working estimate.

Revenue
Total current receipts in the first three months of 2009 amounted to €8,622 million compared to €11,227 million in the same period last year.

Tax revenue, at €8,510 million was €2.6 billion below the 2008 figure. Year-on-year, tax receipts were down 23%. All tax heads were down on a year-on-year basis - VAT at €829 million, Excises at €433 million, Capital Gains Tax at €384 million, Corporation Tax at €357 million, Stamp Duty at €329 million, Income Tax at €204 million, Capital Acquisitions Tax at €19 million and Customs at €21 million.

Non-tax revenue amounted to €112 million in the first quarter of 2009. This compares to €120 million over the same period last year.

Capital receipts amounted to €812 million in the first quarter of 2009. This compares to €1,261 million over the same period last year.

Expenditure
Total net voted spending was €11,823 million to end-March 2009 compared to €11,142 million in the first quarter of 2008, an increase of 6% over the same period last year.

Net voted current spending was €10,336 million to end-March 2009, compared to €9,553 million in the first quarter of 2008, an increase of 8% over the same period last year.

Net voted capital spending amounted to €1,487 million in the first three months of 2009 compared to €1,589 million in the same period of 2008, a decrease of 6% over the same period last year.

Non-voted current (Central Fund) expenditure totalled €916 million in the first three months of 2009. This compares with €1,277 million in the same period in 2008.

Non-voted capital expenditure totalled €415 million in the first three months of 2009. This compares to €423 million in the same period in 2008.

[wysiwyg]

Master of the Understatement ...

Next week:

Lenihan suggests good chance that Pope may be Catholic, and bears do their business in woods

[Bobert]

Reports from the Department of Finance also tell us a new sign has been put in place outside;

[Question R24U]

ffs they are still getting an 8% overrun in current spending. That is not all accounted for by more unemployment payments. There needs to be savage cuts in the three biggest current spenders, health, education and social welfare. Simple as that. We cannot pay for them and soon we wont be able to borrow for them.

[Adrian Veidt]

Sheeeeeeeeeeeeeeeeeeeeeeeit! Mr Lenihen I do believe you're ********************ed! Royally! Sheeeeeeeeeeeeeit!

[Marlowe]

An Exchequer deficit of €3,721 million was recorded in the first quarter of 2009 compared to a deficit of €354 million in the same period last year. Tax revenue was down year-on-year by €2.6 billion or 23%. Total net voted expenditure was just over €680 million or 6% above expenditure levels for the same period of last year.

Commenting on the first-quarter returns, the Minister for Finance, Mr Brian Lenihan, TD said that:

“Today’s figures are further evidence of the weakness of the Irish economy and of the associated pressures on the public finances.

As the economy has continued to slow, we have seen significant increases in the numbers out of work. While expenditure has been successfully contained across most areas, the additional welfare pressures mean that Social Welfare payments are now running at a rate of 12% above the same period of last year. Over the coming months further pressures will likely emerge in this area of Government spending.

In terms of taxation, all areas of taxation are now significantly down on the same period of last year. The main four tax areas – VAT, Income Tax, Corporation Tax and Excise Duties are now collectively 18½% down on an annual basis.

At the start of the year, the 2009 estimate for tax revenue was set at €37 billion. That represented an annual decline of 9¼%. At end-February my Department expected, on a no policy change basis, tax revenue of the order of €34 billion in 2009. This remains the Department’s current working estimate.

Revenue
Total current receipts in the first three months of 2009 amounted to €8,622 million compared to €11,227 million in the same period last year.

Tax revenue, at €8,510 million was €2.6 billion below the 2008 figure. Year-on-year, tax receipts were down 23%. All tax heads were down on a year-on-year basis - VAT at €829 million, Excises at €433 million, Capital Gains Tax at €384 million, Corporation Tax at €357 million, Stamp Duty at €329 million, Income Tax at €204 million, Capital Acquisitions Tax at €19 million and Customs at €21 million.

Non-tax revenue amounted to €112 million in the first quarter of 2009. This compares to €120 million over the same period last year.

Capital receipts amounted to €812 million in the first quarter of 2009. This compares to €1,261 million over the same period last year.

Expenditure
Total net voted spending was €11,823 million to end-March 2009 compared to €11,142 million in the first quarter of 2008, an increase of 6% over the same period last year.

Net voted current spending was €10,336 million to end-March 2009, compared to €9,553 million in the first quarter of 2008, an increase of 8% over the same period last year.

Net voted capital spending amounted to €1,487 million in the first three months of 2009 compared to €1,589 million in the same period of 2008, a decrease of 6% over the same period last year.

Non-voted current (Central Fund) expenditure totalled €916 million in the first three months of 2009. This compares with €1,277 million in the same period in 2008.

Non-voted capital expenditure totalled €415 million in the first three months of 2009. This compares to €423 million in the same period in 2008.

The govt are involved in a hopeless game of catch-up.By the time each budget is introduced,its corrective measures are already too little too late.And once again it looks like political considerations will hold sway next tuesday.So we will all probably be back for more next july.As I said on another thread it is like a bizarre scorched earth policy;by the time they are finished there will be no country left to govern.

[Halo]

ffs they are still getting an 8% overrun in current spending. That is not all accounted for by more unemployment payments. There needs to be savage cuts in the three biggest current spenders, health, education and social welfare. Simple as that. We cannot pay for them and soon we wont be able to borrow for them.

I agree but it has to be done fairly. We cant have food stamps for social welfare payments and say, nurses and teachers still earning world beating beating wages for their respective trades or professions.

[Adrian Veidt]

The Nutters have taken over RTE drivetime today. Joan Burton and Dan Boyle! FFS why is there no credible alternative??

[Julian_Arnold]

Do I hear a resurgence of those three nasty letters...?

India Mike Foxtrot?

Julian

[Marlowe]

For starters,at least 3 billion should be cut on the capital side.Everybody still seems to be buying into the myth that all of these projects will yield a good long term yield.They won't.And many of them are not at all as labour intensive as they are supposed to be.On the other hand the same amount in tax increases has a massive depressing effect on the economy.Plus it is ridiculous to be borrowing 1.5 billion for the NPRF.That's 4.5 billion to begin with.