Home > Financial > Irish public finances record strong start to the year

Irish public finances record strong start to the year

Written by Robert McHugh, on 5th Feb 2018. Posted in Financial

article headline

Irish public finances have started the year in good health with Irish exchequer returns for January 2018 showing that the exchequer recorded a surplus of €1,529m (+4.1% yoy).

January is typically the largest month for VAT receipts and a strong Christmas trading period has been reflected through a record month for VAT receipts of €2,445m, +5.7% (yoy). Income tax revenues also started the year in robust fashion, with receipts of €1,750m collected in January, reflecting an improvement of +6.6% yoy. 

On the expenditure side, gross voted current expenditure of €4,807m was recorded in January, up 4.7% yoy, while capital expenditure of €218m remained relatively stagnant from last year (+0.7% yoy). The cost of servicing the national debt declined by 3.5% yoy to €235m in January.

Goodbody Stockbrokers claims the improvement is on the back of an increase in tax revenues, of which €5,019m were recorded (+4.9% yoy), which was partially offset by an increase in total net voted expenditure, which came in at €3,959m in January (+3.7% yoy).

Goodbody Stockbrokers today commented, "Overall, the public finances have displayed a healthy start to the year. As noted in our Q1 2018 Health Check “Fighting Fit”, we expect a modest budget surplus in 2018, for the first time since 2007. As the fiscal space increases, the government has important tradeoffs to weigh up on how to utilise the extra resources. We believe that the fiscal space should be diverted towards capital investment."

Source: www.businessworld.ie

More articles from Financial

image Description

Irish people are saving more and investing less

Read more
image Description

Microfinance loan funding supported 1141 Irish jobs last year

Read more
image Description

Irish business and consumer sentiment dips in July

Read more
image Description

Irish Central Bank warns overheating pressures may emerge

Read more
image Description

Central Bank Head urges bigger fiscal surplus

Read more