The third quarter Exchequer returns published today show the Government's finances are in deficit to the tune of €1,034 million after the first nine months of 2003, in line with budget forecasts of a deficit of €1.8 billion by the end of the year.
The Department of Finance, which said in June that expected tax revenue to fall €500 million short of target, said today that little had changed over the summer for any change to their forecast.
Department of Finance officials said weak excise duty receipts especially from tobacco make up the bulk of the estimated €500 million tax shortfall. Other non-PAYE tax revenue is also lagging behind target due to continued sluggishness in the economy.
On the expenditure side, both capital and current spending are broadly in line with expectations although final capital expenditure is notoriously hard to forecast due to the skewed timing of the payments.
Commenting on the figures the Minister for Finance, Mr McCreevy, said they underline the need to keep public expenditure within projected limits. "This is being done and is made all the more necessary by the likely shortfall in tax receipts for the year as a whole."