The following statement was issued today (Thursday, 3^rd January, 2008) by the Tánaiste and Minister for Finance, Mr. Brian Cowen, T.D.

An Exchequer deficit of €1,619 million was recorded in 2007. This compares to a budgeted Exchequer deficit of €546 million for 2007 as a whole. In 2006 the Exchequer recorded a surplus of €2,265 million.

The Current Account Balance recorded a surplus of €6,997 million in 2007. This compares to a budgeted surplus of €8,050 million for 2007 as a whole. In 2006 the Current Account Balance recorded a surplus of €9,069 million.

The Capital Account Balance recorded a deficit of €8,616 million in 2007. This compares to a budgeted deficit of €8,597 million for 2007 as a whole. In 2006, the Capital Account Balance recorded a deficit of €6,804 million.

Commenting on the results, the Tánaiste and Minister for Finance, Mr. Brian Cowen, T.D., said:

“The 2007 Outturn for the Exchequer Balance is in line with that envisaged when framing my 2008 Budget, some weeks ago.”

Commenting on the tax revenues, the Tánaiste noted that: “The year on year increase in tax revenue was 3.8 per cent. This was below the original expectations for 2007, mainly due to developments in the property market. However, the growth in Income Tax receipts – up by about 9.5 per cent over 2006 points to sound economic activity and tallies with expectations of income and employment growth in 2007.”

In relation to developments on the spending front, the Tánaiste said that: “The outturn for current expenditure shows year on year growth of 12.3 per cent, in line with expectations, and reflecting in particular the significantly improved allocations for Health, Social Welfare and Education. Strong growth in capital expenditure reflects the progress being made under the National Development Plan – this Government’s Framework for investment in our physical and social infrastructure.”

Finally, the Tánaiste reiterated the fact that while additional borrowing had to be undertaken in 2007, the overall debt position is sound, saying that “The nation’s debt now represents about 25 per cent of our income compared to approximately 65 per cent ten years ago. This is one of the lowest in the euro area.”

Revenue

Total current receipts in 2007 amounted to €47,887 million compared to €46,145 million in 2006.

Tax revenue, at €47,249 million was €1,826 million below profile in 2007. Year-on-year, tax receipts were up 3.8 per cent. Income tax was on target. Stamp duty, VAT, corporation tax, CGT and excise duty were all behind target, at -€739 million, -€374 million, -€259 million, -€240 million and -€232 million respectively.

Non-tax revenue in 2007 was €638 million, compared to a Budget 2007 target of €565 million, slightly ahead of expectations. This compares to €606 million last year.

Capital receipts in 2007 amounted to €1,408 million compared to a Budget 2007 target of €1,483 million, slightly behind expectations. In 2006 the Exchequer recorded capital receipts of €1,871 million in 2006.

Expenditure

Total net voted spending was €44,609 million in 2007 compared to €39,391 million in 2006, an increase of 13.2 per cent. The 2007 figure is €216 million or 0.5 per cent below the Revised Estimates figures. After Departmental balances of €151 million are taken into account, expenditure is broadly in line with the Revised Estimates figures.

Net voted current spending in 2007 was €36,959 million compared to €32,915 million in 2006, an increase of 12.3 per cent. This was €318 million or 0.9 per cent below the Revised Estimates figures.

Net voted capital spending in 2007 amounted to €7,650 million compared to €6,476 million in 2006, an increase of 18.1 per cent. This was €102 million or 1.4 per cent ahead of the Revised Estimates figures.

Non-voted current (Central Fund) expenditure totalled €3,931 million in 2007, including a saving of about €360 million on national debt interest. This compares with €4,161 million in 2006.

Non-voted capital expenditure totalled €2,374 million in 2007, including €1,616 million paid to the National Pensions Reserve Fund. This compares to €2,200 million in 2006.

ENDS

3 January 2008