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Reducing spending and raising taxes will boost public finances

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Tax rates will increase so far in 2021 and government spending is 1.2 billion euros lower than in the same period last year.

xchequer’s figures as of the end of February show a surplus of 900 million euros, a large disparity from a deficit of 700 million euros a year ago when Covid supports were curtailed and the economy was reeling. go up.

On a 12-month rotation basis, Exchequer recorded a deficit of 5.7 billion euros, largely due to the huge cost of support to offset the impact from Covid on households and businesses.

With most government support now lapsed or in the process of being shut down and job growth continuing to see excess spending come to an end pretty quickly – despite the impact on the economy from the war. in Ukraine is unpredictable.

In the first two months of the year, tax revenue was 10.1 billion euros, up 1.7 billion euros compared to the same period last year. However, the first few months of 2021 are distorted by a number of unique factors. A better comparison to 2020 still shows a 10 percent increase in tax income.

Non-tax revenue and capital in the first two months of the year stood at 2.3 billion euros, less than last year.

Total spending at the end of February was 13.9 billion euros including total voted spending of 11.6 billion euros and unvoted spending of 2.3 billion euros.

With jobs fully restored, most of the higher taxes collected in February were due to income tax receipts.

February is usually not an important month for corporate taxes and revenues of only 219 million euros have been collected and are the due month for which no VAT is payable.

However, the cumulative VAT receipt for this year of €3.4 billion reflects a 27 percent increase in 2021 and is an insight into actual spending.

Excise taxes, stamp duty receipts, and capital gains taxes have all increased, although in the latter case it is partly due to technically Adjusted Revenue.

The Treasury Department pointed to strong signs of growth in property values ​​and stock trading, both of which benefit capital taxes.

https://www.independent.ie/business/irish/reduced-spending-and-higher-tax-take-boosts-public-finances-41404016.html Reducing spending and raising taxes will boost public finances

Fry Electronics Team

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