Ireland Sees Boost in Tax Revenues

July 3, 2014 Taxation in Ireland

Department of Finance IrelandDUBLIN – Ireland’s financial position is showing marked improvement, with a fall in expenditures and a rise in revenues helping the government reduce its reliance on borrowing.

Tax revenues in Ireland have risen by 4.9 percent over the first six months of this year, compared to the same time period last year, helping lower the national budget deficit within reach of the government’s own targets, according to a statement issued by the national Department of Finance on July 2nd.

At the end of the second quarter of this year the total tax revenues in Ireland had reached EUR 18 467 million, an improvement of EUR 868 million over the first six month of last year.

The realized tax revenues were also EUR 221 million, or 1.2 percent, higher than projected by the government.
Alongside the improved tax collections, government expenditures had also fallen by 2.1 percent, or EUR 450 million.
The combined effects of the decreasing spending and the increasing revenues has helped lower the national budget deficit to nearly EUR 5 billion, an improvement of EUR 1.7 billion compared to the same time last year.

Commenting on the positive results highlighted in the statement, the Minister for Finance Michael Noonan said that the improved fiscal position reflects the government’s commitment to stabilizing the economy, boosting growth of the job market, and “…reducing our borrowing and meeting the deficit target of under 3% by 2015.”

Photo By: John Lord