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The following statement was issued today (Tuesday, 3^rd April, 2007) by the Minister for Finance, Mr. Brian Cowen, T.D.

An Exchequer surplus of €1,861 million was recorded in the first quarter of 2007. This compares to an Exchequer surplus of €2,420 million for the first quarter of 2006 and a budgeted deficit of €546 million for 2007 as a whole.

The Current Account Balance at end-March showed a surplus of €2,329 million compared to a surplus of €2,111 million for the same period last year and a budgeted surplus of €8,050 million for 2007 as a whole.

The Capital Account Balance at end-March showed a deficit of €468 million compared to a surplus of €309 million for the same period last year and a budgeted deficit of €8,597 million for 2007 as a whole.

Commenting on the results for the first quarter, the Minister for Finance, Brian Cowen, TD, said:

“Today’s figures confirm that the public finances remain in a healthy position thanks to the prudent fiscal policies pursued by this Government. Both tax revenues and expenditure are more or less where we expected them to be at this point in the year. These results, combined with recent CSO data, show that the Irish economy continues to perform well. My Department is forecasting a continuation of strong economic growth, with Gross Domestic Product and Gross National Product both expected to rise by 5.3 per cent this year. This Government is working to ensure that our economy remains strong.”

“Continued growth will rely on maintaining prudent economic and fiscal policies and on retaining a competitive and flexible economy. That is why the National Development Plan will have first call on resources and will be implemented in full, on time and on budget if we are re-elected to office.”

Revenue

Total current receipts in the first three months of 2007 amounted to €11,954 million compared to receipts of €10,865 million for the same period in 2006.

Tax Revenue, at €11,846 million is €28 million ahead of profile at end-March. Year-on-year, tax receipts are up 10.2 per cent compared to the profiled increase for the first quarter of 9.9 per cent. The best performers are Corporation tax (+€246 million ahead of profile) and Stamp duties (+€17 million ahead of profile). Capital gains tax, Income tax, Excise duties and VAT are all behind target, at -€97 million, -€76 million, -€56 million and -€51 million respectively.

Non-tax revenue in the first quarter of 2007 was €108 million. This compares to €116 million for the same period last year and is in line with expectations.

Capital receipts for the first three months amounted to €844 million compared with €926 million for the same period last year. This is as expected.

Expenditure

Total net voted spending was €9,830 million at end-March compared to €8,336 million for the same period last year, an increase of 18 per cent. This is 0.8 per cent ahead of the published profile and compares to the planned increase of 14 per cent for the year as a whole provided for in the Revised Estimates.

Net voted current spending in the first three months of 2007 was €8,947 million compared to €7,830 million in 2006 - an increase of 14 per cent. This is 0.2 per cent ahead of profile and compares to an estimated increase of 13 per cent for the year as a whole provided for in the Revised Estimates.

Net voted capital spending in the first three months of 2007 amounted to €883 million compared to €505 million in 2006. This is €57 million or 6.9 per cent ahead of profile. Issues for net voted capital expenditure to end-March 2007 illustrate that rollout of the Government’s capital programme under the National Development Plan 2007-2013 including the funding of significant projects in the key areas of transport, the environment and education has commenced very well.

Non-voted capital expenditure is in line with expectations. This includes €404 million paid to the National Pensions Reserve Fund.

Expenditure on Central Fund Services totalled €678 million in the first three months of 2006 compared with €924 million in the same period last year. This is as expected.