The Exchequer deficit for the first five months of the year now stands at €3.6 billion as weak property markets and a slowdown in consumer spending continue to hit the Government’s tax take.
The Exchequer returns for May, published this evening, show tax revenue stood at €17.1 billion, €1.15 billion behind what the Department of Finance had forecast at the beginning of the year.
One of main factors behind the deterioration in Government finances was a €600 million shortfall in VAT which stood at €6.7 billion.
Capital Gains Tax was also €360 million behind profile at €602 million.
Both these figures led to an overall deficit of €3.598 for May compared to €266 million for the same period in 2007.
On the positive side, income tax was a fractional €33 million above expectations at €4.97 billion.
But corporation tax and excise duty were also both down on predictions by €37 million and €88 million respectively.