The State’s finances remain in good shape, with tax revenues higher and spending lower than forecast. The latest exchequer returns, which cover the first two months of the year, indicate, however, that income tax receipts were 3.3 per cent lower than expected at €3.97 billion. It also noted that income tax was up over 14 per cent in year-on-year terms, reflecting the current strength of the labour market. The €863 million year-on-year improvement was driven by an increase in tax revenues, and somewhat offset by increases in current and capital voted expenditure, the department said. Mr Vale said a dip in corporate tax receipts as a result of depressed economic activity could coincide with a dip in income tax receipts if employment levels fall.

Source: The Irish Times March 03, 2020 17:01 UTC