Jan O'Sullivan (Limerick East, Labour)
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Question 131: To ask the Minister for Finance if he will make a statement on the recently published estimates of receipts and expenditure for the year ending 31 December 2006. [39002/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The White Paper forecast of the Exchequer balance for 2005 shows a deficit of €850 million. This represents an improvement of €2.138 billion compared with the budget 2005 forecast deficit of €2.988 billion. This improvement is largely due to an excess of more than €1.8 billion in tax receipts. The forecast of the general Government balance, GGB, for 2005 shows a surplus of 0.3% of GDP, which represents an improvement of 1.1% of GDP compared to the deficit of -0.8% of GDP forecast in budget 2005. The bulk of this shift is explained by improvements in the net balances of the Exchequer, the social insurance fund and the local authorities, partially offset by the recording in 2005 of the full projected cost of the repayment of certain nursing home charges.

For 2006 the White Paper forecasts a pre-budget Exchequer deficit of €1.088 million and a pre-budget GGB surplus of 0.8% of GDP. This strong underlying fiscal position has allowed me to produce a progressive and socially inclusive budget without jeopardising the long-term sustainability of the public finances.