Cost of servicing national debt to hit €7.5bn next year

The government’s latest report on state spending and receipts shows that the tax intake for 2011 will be €700m less than expected,

THE GOVERNMENT’S deficit projections are expected to remain on target for the year despite less tax being taken in for 2011 than had been forecast.

The government’s White Paper on Receipts and Expenditure outlines that tax revenue is now expected to hit €34.175bn, based on the latest Exchequer figures, compared with the €34.9bn target.

Those figures, released yesterday, showed that the tax take for the year to the end of November was down €500 million on expectations (1.6 per cent below target). PRSI payments are not part of the Exchequer returns, but are considered in the overall general government balance.

The paper published today also indicates that the cost of servicing the national debt will rise from €4.9bn in 2011 to €7.48bn next year.

The state’s contribution to the EU budget will fall by €5m in 2012.Receipts from EU funds in 2012 will increase by €118m, while contributions to EU funds will also increase next year, by €60m.

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