Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 120: To ask the Minister for Finance the percentage of the total income tax take that is spent on local authority services. [30407/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Income tax receipts were 13,177 million euro in 2008 and 11,835 million euro in 2009. The forecast for 2010 is income tax receipts of 11,530 million euro.

I understand from the Department of the Environment, Heritage and Local Government that the Local Government sector was responsible for a total current expenditure of some 5.1 billion euro in 2008. Local authorities receive current funding from General Purpose Grants from the Local Government Fund (20% of funding in 2008), income from rates on commercial premises (27%), local charges (28%) and specific Government grants (23%).

The Local Government Fund is financed by the full proceeds of motor tax and an Exchequer contribution. The Exchequer contribution to the Local Government Fund in 2008 was 548.7 million euro, in 2009 was 443 million euro and there is an allocation of 226.4 million euro in 2010.

As the proceeds of income tax are not ringfenced for particular expenditure, it is not possible to calculate the percentage of the total income tax take that is spent on local authority services, either through the Exchequer contribution to the Local Government Fund or the provision of specific Government grants.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context

Question 121: To ask the Minister for Finance the percentage of the general tax take that is spent on local authority services. [30408/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Total tax receipts were 40,777 million euro in 2008 and 33,043 million euro in 2009. The forecast for 2010 is total tax receipts of 31,050 million euro.

I understand from the Department of the Environment, Heritage and Local Government that the Local Government sector was responsible for a total current expenditure of some 5.1 billion euro in 2008. Local authorities receive current funding from General Purpose Grants from the Local Government Fund (20% of funding in 2008), income from rates on commercial premises (27%), local charges (28%) and specific Government grants (23%).

The Local Government Fund is financed by the full proceeds of motor tax and an Exchequer contribution. The Exchequer contribution to the Local Government Fund in 2008 was 548.7 million euro, in 2009 was 443 million euro and there is an allocation of 226.4 million euro in 2010.

It is possible to calculate that approximately 5.4% of the general tax take was provided to local authorities in 2008 towards the costs of their day-to-day services, through the provision of specific Government grants and funding through the Local Government Fund.