Economy on course for over €600m surplus

Economy on course for over €600m surplus

The Government’s pre-Budget White Paper shows the economy is on course to deliver a surplus this year of €609 million.

The White Paper also shows another significant overrun on corporate tax receipts, which are €800m higher than forecast at the start of the year.

The White Paper is part of the architecture of the annual Budgetary process.

It sets out where the public finances would be at the end of the year, if the Minister for Finance Paschal Donohoe did nothing on Budget Day.

So far, the economy is performing stronger than forecast delivering a surplus of €609m this year compared to a broadly break even situation predicted at Budget time last year.

Evidence of this boost can be seen in corporate tax receipts rolling in €800m more than forecast, however, Government spending has also risen more than forecast.

It is running over €400m ahead with supplementary or extra funds required for Health, Justice and Education.

The White Paper also notes that the Irish contribution to the EU Budget is set to increase next year by a billion euro to €3.475bn.

Meanwhile, the returns from customs revenue is expected to almost quadruple from €366mto €1,241m, another indicator of the calculations behind a hard Brexit with potentially a hard border.

Speaking ahead of the publication of the White Paper, Minister Donohoe, said that a planned deposit of €500m into the ‘Rainy Day Fund’ will not be made this year as the Government is expected to have to borrow next year to deal with a possible no-dealBrexit.

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