Michael D Higgins (Galway West, Labour)
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Question 103: To ask the Minister for Finance if, in relation to the Exchequer returns for the first two months of 2007, the income tax, capital gains and excise duty receipts coming in below projections are evidence of a slowdown in the economy; and if he will make a statement on the matter. [10221/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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While income tax, capital gains tax and excise duties were slightly below profile at end-February, total tax receipts were 12.8 per cent ahead of the same period last year and 2.4 per cent ahead of profile. Income tax receipts were up 8.1 per cent compared to the same period in 2006, capital gains tax receipts were up 27.4 per cent and excise duties were up 2.8 per cent. The other main tax-heads — VAT, corporation tax and stamp duty — were also well up on last year and ahead of profile.

This data does not betoken a slowdown but it is always unwise to attempt to draw conclusions about the performance of the economy based on tax receipts at this early stage. The latest available economic estimates for 2006 show that the economy continues to perform well. In Budget 2007 in December, my Department estimated that real GDP growth in 2006 was 5.4 per cent while in GNP terms the growth rate in 2006 was estimated at 5.7 per cent.