End 2014 Exchequer Statement shows public finances under control in 2014

Issued 5 January 2015

End 2014 Exchequer Statement shows public finances under control in 2014

  • Deficit continues to fall ahead of forecasts and 2014 Exchequer Deficit of €8.2 billion, €3.3 billion lower than 2013
  • Excluding once off transaction the underlying deficit is €4.7 billion lower year on year
  • Tax Revenues grew by €3.5 billion (over 9%) in the year increase reflective of increase in employment, and improving domestic economy

The Exchequer Statement for 2014 was published today (Monday, 5th January 2015) by the Department of Finance and the Department of Public Expenditure and Reform. The Exchequer Statement shows an Exchequer deficit of €8.2 billion, €3.3 billion lower than 2013.Excluding once off transaction the underlying deficit is €4.7 billion lower year on year. €41.3 billion in taxes were collected in 2014, an increase of €3.5 billion on 2013, and €42.2 billion net voted expenditure was recorded, down €848m on 2013.

Commenting on the performance of tax revenues, Minister Noonan stated:

“The exchequer performance highlights the underlying improvement in the Irish economy with increases in income tax and VAT of 9% and 8% respectively, year on year, arising from increases in the number of people at work and more money being spent in the domestic economy. Overall, the Exchequer returns show that the tax base continues to grow in line with targets and provides a solid foundation going into 2015. Budget 2015 is designed to support this recovery and I would expect that this strong exchequer performance will continue into 2015.

Commenting on expenditure management in 2014 Minister Howlin stated:

Spending continued to be managed in line with our fiscal targets. On foot of the better than expected tax revenues, Government agreed to provide some additional funding to support the continued delivery of health services. Around €100m extra was spent on capital projects around the country, such as the storm damage repairs arising from the severe storms earlier in the year. Monies were also directed to stimulus projects announced in 2014. As well as the stimulus monies and storm repairs, Government agreed to approximately €100m additional capital expenditure for 2014 for essential Transport and Garda fleet replacement.”

In conclusion, the two Ministers added:

Overall, the Exchequer performance in 2014 is real evidence of recovery, and job creation throughout the year. Stable public finances are an absolute necessity for a growing economy and job creation. As we move into 2015 people will begin to see the increases in their pay cheques due to measures announced in the recent Budget. The priority now is to continue to get more people back to broaden and strengthen the recovery in 2015”.

 

ENDS

5th January 2015