In General Government terms, the surplus is expected to be about 1.8 per cent of GDP compared to a Budget target of 0.3 per cent. The tax inflow of 7,975 million, or 52.6 per cent of the Budget day target, is well ahead of expectations. Tax revenue in the half year was 13.0 per cent ahead of the same period in 1997. However, when adjusted for the transfer of Motor Vehicle Duties to the local authorities, the underlying increase is somewhat higher at about 14.6 per cent. On an underlying basis, all tax heads are performing very satisfactorily and are expected to exceed the Budget target in almost every case.
Income taxes are especially buoyant, suggesting a continuing strong growth in employment.
Tax revenue is expected to exceed the Budget target by about 800 million. This is in line with expectations. The outlook for the remainder of the year remains favourable. While there are pressures on some Departmental expenditures, any overruns are being substantially offset by savings in other areas of spending and higher PRSI receipts. It is expected that expenditure for the year will be in line with the Budget day target.