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Public finances registered a deficit of 8.9 billion euros in November, according to the latest figures from the Treasury.
This compares with a surplus of € 3.355 billion in November last year.
It is also an improvement on the deficit of 11.7 billion euros registered at the end of October, due in large part to some specific factors.
The deterioration compared to last year is largely due to increased spending in the areas of health and social protection in response to Covid-19.
Public spending was up 11.4 billion euros, or 23.7%, in the year to the end of November compared to the same period last year.
Accumulated tax revenue amounted to 3,761 million euros, 6.9% less than last year.
November is normally the most important month for tax collection. However, there were a number of specific factors last month.
Income tax collection has dropped by just over a billion euros compared to November 2019, mainly because the ‘pay and file’ deadline for the self-employed has been extended.
The PAYE receipts, however, “… hold up remarkably well …” according to Finance Minister Paschal Donohoe in a statement accompanying today’s figures. Income tax so far this year is 7.5% behind last year.
In addition to the extension of the payment and presentation deadline, the November figures were also affected by the return of 430 million euros of the 550 million euros reserved in October for the Covid Restrictions Program. This suggests that acceptance of the scheme has been low.
The Department of Social Protection has also invested 900 million euros in the Social Security Fund to finance the Pandemic Unemployment Payment. This improves the Treasury figure but has no effect on the general budget deficit registered during the year.
Corporate tax, which fell unexpectedly in October, recovered to deliver 3.05 billion euros in November. Altogether, corporate tax amounts to 10,717 million euros, 7.1% more than last year.
VAT revenue was down 17.7% in the year to the end of November compared to last year, reflecting less money spent in the economy.
While excise revenue has also declined so far this year, it is up 11% in November compared to November last year.
The Department of Finance suggests that this may have something to do with fewer people traveling and buying duty-free products or products like beverages and cigarettes abroad.
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