Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE COST OF recapitalising Ireland’s banks has been underlined by the latest Exchequer returns – which showed that the Irish public finances would be €2bn better off than they were last year if not for the cost of repairing the banking sector.
Figures published by the Department of Finance this afternoon showed that the Exchequer ran up a €18.9bn deficit in the first seven months of the year, compared to a €10.2bn deficit for the same period in 2010.
The increase in the deficit was due to a massive €10.6bn bill run up by the taxpayer in bailout out the banking sector – with over €7.5bn paid out to recapitalise the banks in accordance with the last batch of stress tests, and another €3.1bn in payments of promissory notes to Anglo, Irish Nationwide and EBS.
The figures also showed that the government had spent over €3bn servicing Ireland’s national debt – that is, paying the interest on the country’s borrowings – so far this year.
Tax revenues for the year to date are 1.4 per cent ahead of target, thanks to higher income tax receipts and the introduction of the Universal Social Charge, though VAT receipts are €190m lower than expected and are down slightly on last year.
Three of the so-called ‘big four’ methods of raising taxes – income tax, excise duties and corporation tax – are all ahead of schedule, however, with income tax bringing in an extra €180m, corporation tax €93m, and excise duties €67m.
All in all, the Exchequer has taken in €18.633bn for the seven months to the end of July.
The State’s total expenditure is up by 0.9 per cent on the same period last year, to €25.7bn, with current spending up by 3.5 per cent but with capital expenditure down by over 26 per cent.
Department of Social Protection spending was lower than expected as a result of unexpectedly high PRSI receipts, while Education and Skills spent €116m less than anticipated, and Agriculture, Fisheries & Food spent €95m less than expected.
To embed this post, copy the code below on your site
stupid banks
How many people could that save from starvation in Somalia? I reckon it would be enough to save them all. What benefit, “in real terms,” did Ireland get from throwing another 2 billion at the banks? Is there someone out there who can enlighten please!
Can anyone explain how after a harsh budget in 2010 that was supposed to make a major correction this year, the deficit is still so high? Please someone answer. I am concerned. Is anyone else concerned?
I mean it is still too high after you take away the input to the banks. We would only be 2 billion euro better off.
Rtfa
Yes very concerned. And now Italy & Spain may need bailouts im very very concerned. Just what is the answer to this financial holocaust ?
It is worrying alright. Another big problem thats going to hit us very soon is the fact we own 48 billion euro worth of Italian bonds. Many commentators believe Italy is on the verge of default. This mess is going to get alot worse.
Billions shmillions it all just seems like a game in which we have very little influence. Ireland , as someone put it, is like a cork bobbing around in a stormy sea.
The banks have been guaranteed by the Irish State to save them.
Time to move on. It’s shit, we know it’s shit but it’s time to build a bridge.
Bridge to where?
A bridge with only one side isn’t really a bridge, it’s just a road leading to a big fall.
Terry, we put money into the banks last year too.
Why do you and many other journalists insists on using such inconsistent methods for conveying data.
You change from Millions to Billions in the same sentence that you decide screw numbers its time for percentages.
Tax revenues are up 1.3% but does that cover the shortfall of €190,000,000 from VAT receipts?
The answer is no, its €0.03 Billion off
@Stephen: Each individual measure (whether billions, millions or percentage) is used because it’s the most appropriate one for each figure. Referring to the VAT shortfall as €0.19bn looks strange, for example. Percentages are used for a contextual comparison and to spare the reader having to compare two chunky figures.
It may be inconsistent but the alternative is to use swathes of figures – which, ultimately, would make the piece almost entirely illegible.
To answer your other question: no, the extra income tax does not cover the VAT shortfall, but the extra income made through corporation tax, excise duty, customs, stamp duty and capital acquisitions tax all cumulatively cover the shortfall, meaning the overall tax take was €263m ahead of target.
While I do see you point in the numbers being appropriate as they will show generally be comparable. It is the flippant changing from numbers to percentages in the same sentence.
Here is an example of how a paragraph above would be made 100 times easier to read and take in actual information by using some proper convention and formatting.
The State’s total expenditure stood at €25.65 Billion up from €25.43 Billion (+0.9%) on the same period last year. Current spending increased to €24 Billion from €23.2 Billion (+3.5%) but that was off set by capitol expenditure of €1.6 Billion down from €2.2 Billion (-26.4%).
See this not only lets me know the increases and decreases it also shows me them in relation to each other in a close environment.
That’s honestly a good suggestion, but it has one pitfall: our in-house style guide forbids us from using the % symbol, so it would have to become…
Sound a bit like style guides need finessing.
Can you please explain to me gavin, why did you choose the title you did? Bad news gets bigger readership, right?
Well, Market sentiment is the reason the economy is not recovering and this sentiment is driven almost solely by the media. A lot of people no longer have money to spend, but the ones that do are not spending. You, the media, should be concentrating on any good news you can get to drive market sentiment and begin the recovery of the economy.
All that money has been pumped into the banks, because the governments we elected decided that was what needed to be done. Agree or disagree, there is nothing that will change that. In future, will you please concentrate on the good news, cause we get so little of it. It’s for the good of the country!
have your say