Tommy Broughan (Dublin North East, Independent)
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Question 40: To ask the Minister for Finance his views on the latest Exchequer returns. [34022/10]

Bernard Durkan (Kildare North, Fine Gael)
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Question 122: To ask the Minister for Finance the extent to which the projections outlined and provided for in the current year's budget are on target; and if he will make a statement on the matter. [34121/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 40 and 122 together.

The most recent Exchequer Returns covering the period to end-August show that the corrective budgetary actions taken by the Government to date are having a positive effect. The Exchequer Borrowing Requirement for 2010 was forecast to be of the order of €20 billion and developments so far are in line with this estimate. The Exchequer deficit at end-August was approximately €12.1 billion compared to €18.7 billion in the same period last year.

Tax revenues were just under €1.9 billion or 9% below the corresponding period in 2009 but this was in line with expectations. In total, just over €18.9 billion in tax receipts were collected in the first eight months of the year, just 0.7% below profile. Three of the largest tax-heads – VAT, corporation tax and excise duties were slightly above target in the period to end-August. The fourth – income tax – was somewhat weaker than anticipated in the first eight months of the year although receipts were above target in both July and August. The Budget forecast that taxes would be 6% below the 2009 outturn. Developments in the year to date are consistent with this view.

At end-August, total net voted expenditure, at some €29 billion, was just under €1.8 billion or 6% below the same period in 2009 demonstrating the impact of the expenditure control decisions taken by Government. Net voted current expenditure was 0.8% above target at €26.4 billion and was 1.6% down year-on-year. Net voted capital expenditure at end-August, at €2.6 billion, was down some 34% year-on-year and was some 24% below target. A considerable portion of this shortfall is due to timing and operational issues and it is anticipated that capital expenditure will pick up over the remainder of the year.

The Exchequer Returns for the period to end-September will be published by my Department on 4 October. At that stage, my Department will comment further on the likely end-year position.