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THE STATE HAS taken in €500 million more than it had hoped for in tax so far this year.
The figure for the first six months of the year currently stands at €221 million ahead of target, but is artificially low due to a slight delay in processing a €285 million payload from corporation tax returns.
The corporation returns will be included in the July exchequer figures, Department of Finance officials said today. The payments were slowed down by delays associated with the introduction of the Single European Payment Area regulations.
Department of Finance principal officer for budgetary policy John Palmer said that the returns were “a good sign for the economy”.
Full year
While the returns mark the end of what has been a broadly positive six months for the State’s finances, Finance officials won’t yet predict that the gains would be carried through to the end of the year.
A lot will depend, they said, on the returns filed during the period from Autumn to the end of the year, which includes the dates on which self-employed persons must file their income tax.
Overall, the budget deficit is just under €5 billion for the first half of the year, which is a €1.7 billion improvement on 2013.
The improvement in the property market has translated to a stamp duty haul that is €50 million ahead of target.
Around two thirds of this can be attributed to sales of commercial property, with the remainder raised from residential transactions.
Social Protection was again the largest spending department, accounting for 38% of all voted expenditure for this year.
A decrease in unemployment benefits as a result of the improving job market enabled Joan Burton’s department to come in ahead of target by 0.2%.
Health was in second place, with its €6.9 billion spend accounting for 27% of all expenditure.
However, the Department headed up by the beleaguered James Reilly still posted a €200 million overrun.
In a joint statement issued along with the figures, Ministers Michael Noonan and Brendan Howlin called the results “solid”.
The statement said: “The steps taken to stabilise the public finances over the last number of years have laid the foundation for the improvements in the domestic economy and, most importantly, the increase in jobs that we are no seeing.”
Both said that the Government remained committed to narrowing the budget deficit to under 3% by 2015.
Overspend
In a note issued in the aftermath of the release, Davy chief economist Conall MacCoille pointed to a “massive overspend” in the Department of Health which had in turn caused a €10 million overspend in net voted expenditure.
Despite this, he said that “spending arithmetic [is] still looking better than expected heading into next year’s budget”.
Mac Coille said that the improvement in the exchequer balance – which is around €1 billion to the good compared to expectations for the first half of the year – will be politically useful as the Government angles for a lesser than planned adjustment in Budget 2015.
“[This] will surely be seized upon as political cover to reduce this year’s Budget adjustment to around €1 billion, below the €2 billion originally planned.”
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My first time getting it from tomorrow and I’m so thankful it’s available, the workplace were originally going to pay us only 50% of our contracted hours which was just not something some staff on 8 hour contracts could live on, especially when they work a lot more than 8 hours a week. Retail, even as management, is precarious!
@Whatever: I was on it from the middle of March last year until the end of December as my job is still closed but thankfully got a college placement co-op position for the next 8 months so I am off it now. Was very grateful to receive the PUP, glad it’s there for ye now being laid off again
@Whatever: As self employed I applied last year and was told NO. Now I eat beans, no heat, food or help. No one cares.
@Paul Somers: why was that? I know a few self employed people that got it. My brother and husband included
@Paul Somers: had you a tax return completed and paid for the previous financial year? If you completed a return in October/November 2019 for the 2018 tax year you should have got it. If you only started your business in 2019 you should qualify once you submitted a return for that year.
@Laura Clayton: I honestly don’t know, I pay tax and the vat. Got scared, and now sitting in the house with thermals and a wooly hat. I would love a cuppa
@Derdaly: yes I did
@Paul Somers: you should be entitled to it keep contacting your local social welfare office they will get it sorted for you. I was waiting 5 weeks for mine to come through but I got it eventually with persistence
@Brian Byrne: gave up but thank you
@Paul Somers: honestly don’t give up Paul keep at them daily until they sort it for you. I sent in the postal application and applied online through the social services portal. It was all sorted eventually.
@Paul Somers: That might be why you never got it. If you want it it’s there for you as long as you provide what’s required of you.
@Seán O’Loughlin: it’s embarrassing
@Paul Somers: You were told lies. I’m self employed and on the full PUP.
@Paul Somers: paul I’m self employed and I’m on it since March last year. I had to apply 3 times because it never went through online. The last time I posted it in and was eventually back dated to the 1st time I applied. You are 100% entitled to it. Hope thing get better for you soon.
Heard of some people being denied loans because they claimed pup. Thought it wasn’t meant to affect your credit rating?
@Brian Dunne: yeah that is true. Iv heard of people having their mortgage application rejected because one of the joint applicants were on PUP. Even with employer letters saying their job is secure and available for the person to return to. I don’t know if it effects your actual credit rating, but banks will not lend to people on social welfare and PUP is social welfare no matter what way you break it down. Its a joke
@Eoin Jackson: and before people start blasting the banks as the big bad wolves for that strategy, that is mandated by the CBI, which in other words, is basically mandated by the government.
@Eoin Jackson: yup – that was the case for me and my husband last April. We were both on Pup and both had letters confirming future employment and BoI pulled our approval. They’d issued it in February and we were sale agreed on a house and everything. That all fell through.
Ended up going to the credit union. Their deal isn’t great and you’ve to have a 30% down payment (Christ) but they signed off on it for us while both on Pup. In our own house now since November and I’m still on pup. Husband back at work but laid off on the wage subsidy scheme. We are well able to afford the mortgage repayments but there’s not a chance we could have afforded to rent a place
@Brian Dunne: it affects affordability not credit rating, so no surprises that people were refused a loan due to a lower income
Cash nixer bonanza
@MickN: Mor on. It’s keeping the wolf from the door for so many people.
@Seán Óg: Aye right…
@Mike: Dead on
Where do I sign up?
Went on the PUP in November because of redundancy.. started a new job today. Happy days!
Banks are very hard to deal with this lockdown. I tried to get a 2 month freeze on the mortgage as it’s going to be 2 months until I’m back up and running. Spent an hour filling in the online form. Looking now for last years earnings. Accountant letters etc. etc. What’s last years accounts got to do with being out of work this year due to a pandemic. I think the government should be doing more with the banks like last lockdown.
Serious question: Do people living in Northern Ireland, if working in the south, get paid PUP from the Irish Government?
@David Connell: only available to people with pps /prsi no. You have to supply details in order to qualify
And the reports of the country bouncing back later this year and the housing market being strong.
What a load of bs
@billy bound: I’m in construction and I’m up the walls. That includes every construction friend I know. Covid has made things busier not quieter.
If you get OAP and out of work you don’t qualify, even if you pay taxes
@Margaret Deacon: why should you get pup if you weren’t working in the first place.
When do they transfer to jobseekers (aka regular dole)?
And still you’ll get another tax demand at the end of this year like most people did in the last 2 weeks
when the chickens come home to roost this place will be worse than 2008.
If you are getting OAP but still working before Covid hit and were paid on PAYE basis, as far as I know, you are entitled to PUP. However if OAP and self employed and NOT on PAYE system, (just taxed at end of year when returns are made)then no PUP. Anyway this is what happened 2 of my friends who were in each situation as described
have your say