PUBLIC FINANCES continue to have at least a €10 billion hole in them, according to the latest Exchequer figures published by the government. The figures suggest that Ireland’s recovery from the recession remained weak as it headed into the second half of the year.
Tax receipts for July fell by 5.5% compared with July 2009, and tax revenues for the first seven months of this year are down 8.2% on the same period last year.
Tax generated through consumer spending is almost in line with expectations of €8.97 billion by the end of July. A survey released last week showed an increase in consumer confidence, with over half of respondents saying they expected their income for this year to be higher or the same as last year’s.
Davy Stockbrokers says that it still expects the government to beat its €31 billion tax revenue target by the end of the year, but warns that the momentum of tax receipts has slowed down.
Capital spending is down, with just €2.23 billion of a planned €2.89 billion spent so far this year.
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