Michael Ring (Mayo, Fine Gael)
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Question 112: To ask the Tánaiste and Minister for Finance if, in view of the most recent Exchequer returns for the first quarter and the shortfall of these returns as against Budget 2008 projections, he will provide a revised estimate for the end of year outturn. [13958/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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At the end of March there was an Exchequer deficit of EUR354 million. For the year as a whole an exchequer deficit of EUR4,866 million was forecast in the budget. In looking at the performance of taxes, of particular note is the good performance of income tax, which is up 5 per cent compared to the same period last year. This is a good indication of the resilience of the Irish economy and reflects that the most important part of economic activity — employment — remains strong.

Overall tax receipts were EUR600 million, or 5.1 per cent behind target in the first three months of 2008. Over half of this shortfall is due to the poor performance of Capital Gains Tax which reflects the more adverse conditions in equity and property markets. The next key payment date for CGT is at the end of October. At this stage it is not expected that this tax shortfall, particularly in CGT, will be recouped later in the year. It is important to point out that the current situation is manageable given the strong position of the public finances such as our low debt to GDP ratio. My Department will continue to closely monitor overall tax performance over the coming months as a clearer trend emerges.