Exchequer returns for November show sharp increase in spending combined with weaker receipts. The public finances were €8.9 billion in the red last month as the second wave of Covid lockdowns saw spending on pandemic-related supports rise and tax receipts slide. This compares to a surplus of just €3.3 billion this time last year, and marks a year-on-year deterioration of €12.3 billion. The latest exchequer returns, published by the Department of Finance, show the Government took in €51.1 billion in taxes in the year to the end of November. This was 6.9 per cent or €3.7 billion down on last year.
Receipts Income tax receipts were down €1 billion, or 29 per cent year on year in November, primarily as a result of an extension to the “pay and file” deadline for self-assessed taxpayers, which was pushed out to December 10th because of Covid-19 restrictions. For the year to date, income tax receipts were €19.5 billion, down 7.5 per cent on last year. With much of the retail sector back in lockdown mode over the past six weeks, VAT took an even bigger hit. Receipts from the sales tax were down by 17.7 per cent or €2.6 billion on the same 11-month period last year, reflecting what the department described as a “significant decline in personal consumption”. Corporation tax receipts cumulatively came to €10.7 billion, up 7 per cent on last year, and almost on a par with last year’s record €10.9 billion albeit that was for 12 months. November is generally the largest month for corporation tax. The figures show net expenditure to the end of November was €59.3 billion, up €11.3 million, or 23.7 per cent, on the same period in 2019. Comments are closed.
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