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Buoyant tax receipts reflect economy’s rapid growth

A buoyant set of exchequer figures for May confirm that the economy is growing rapidly. The Department of Finance figures showed that revenues from all the main tax headings rose significantly in the first five months of the year.

Overall, the Government collected tax revenues of over €17.28bn in the first five months to the end of May, up 10.9% in the year.

The Government collected €734m more in tax receipts than it had expected at this stage in the year.

Accounting for expenditure, revenue and lower debt interest items, Conall MacCoille, chief economist at Davy Stockbrokers, estimates that the Government now has €1.7bn more in its coffers than it had anticipated at the time of the last budget in October.

Analysts said that the increase in Vat and income tax receipts will please the Government because they show that consumer spending may at last be returning after the years of crisis.