End -2009 Exchequer Returns - Statement from Minister for Finance, Brian Lenihan TD

The following statement was issued today (Tuesday, 5 January 2010) by the Minister for Finance, Mr. Brian Lenihan, T.D.

At end-2009, an Exchequer deficit of €24,641 million was recorded. Tax revenue, at €33,043 million was €1,357 million or 3.9 per cent behind profile. Total net voted expenditure at €47,163 million was €221 million or 0.5 per cent less than profiled.

Commenting on the returns the Minister for Finance, Mr. Brian Lenihan, T.D. noted that:

“The Exchequer Returns for end-2009 released today by my Department show that the overall deficit position for 2009 was €24.6 billion, which is better than expected in December’s Budget.

This improvement in the 2009 position is largely due to a better than anticipated performance in tax revenue in the month of December. This is welcome news. That said, tax receipts at just over €33 billion, were down €7.7 billion or 19 per cent on a year-on-year basis. The last time that receipts were at this level was 2003.

Overall net voted expenditure, at some €47 billion, was €221 million or 0.5 per cent below profile and was 4.4 per cent lower year-on-year. Throughout 2009, the Government has maintained a tight control over public spending and this will continue given the reduced resources of the State.

Today’s figures also highlight the impact of our rising debt levels, as debt servicing costs have increased by over €1 billion in 2009. This is clear evidence of the need to take action to achieve long term sustainability of the public finances.

I believe that the 2009 Exchequer Returns demonstrate that the action taken by Government in managing the public finances is working. Given the small improvement in the actual deficit over that anticipated in the December Budget we face into this year’s task with a greater sense of confidence. The challenges we face are great but the Government is committed to the targets set out in the recent Budget. As I said, economic growth will return during the course of this year and this will assist in the ongoing improvement in the public finances.”