Increased tax revenue boosts Exchequer returns

The Exchequer Returns for 2003 show a significant improvement in the Government's finances.

The figures released this afternoon show an Exchequer deficit of €980 million well inside the Budget target of €1,869 million.

The smaller deficit was due in the main by higher than expected tax receipts as well as a lower than expected spending figure.

The Minister for Finance, Mr McCreevy, said: "The reduction in the borrowing requirement means a lower servicing burden on the Exchequer for the future."

The figures show tax receipts increased by 9.6 per cent compared with the Budget target of 8 per cent.

Total tax receipts amounted to €32,103 million, €457 million above the Budget 2003 target.

This was due to increased revenue in capital taxes and company taxes.

Total net voted spending increased by 6.7 per cent to € 30,742 million marginally less than the target for the year set out in the 2003 Revised Estimates.

Despite the improved performance Mr McCreey warned that with borrowing for the next three years projected at nearly € 10 billion in total, "there is an obvious need for continued restraint on the expenditure side and for ongoing strict management of spending to ensure value for money from the record sums involved."