Economic growth continues despite foot-and-mouth

Tax revenue for the first quarter increased by 9 per cent to £1,147 million on last year indicating continued economic growth despite the foot-and-mouth crisis, the Minister for Finance confirmed this evening.

Issuing the Exchequer figures for the first quarter, Mr Charlie McCreevy, said the returns showed a surplus of £1,147 million (euro 1,457) up on the surplus of £1,009 for the same period last year. Tax revenue was £5,035 million while non-tax revenue was £84 million, in line with expectations.

But Mr McCreevy said the year-on-year increase of tax returns of 9.2 per cent was below the Budget target of 12.5 per cent. Poor excise duty returns, down 8.3 per cent on the same period in 2000, were partly responsible.

Total receipts of £5,119 million were up compared to receipts of £4,690 for the first quarter of 2000.

However, the performance of taxes during the first quarter suggests large over-performance on taxes were unlikely, the Minister noted.

The capital budget deficit of £126 million at end-March 2001 compares to a deficit of £181 million for the same period in 2000.

The 1 per cent of GNP – equivalent to £765 million – annual payment to the National Pensions Reserve Fund will receive two instalments (£182 million) in the second quarter.

The Minister added the impact of the foot-and-mouth crisis would depend on the course of the disease and its affect on consumer and investor confidence.