end-2020 exchequer returns · 2021. 1. 5. · exchequer position –overview € million...
TRANSCRIPT
End-2020 Exchequer Returns
John McCarthy
Chief Economist, Department of Finance
5th January 2021
2 Rialtas na hÉireann | Government of Ireland
Exchequer position: summary
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Exchequer position – overview
€ million year-on-year change, %
Total revenue 82,465 6.1
: tax revenue 57,165 -3.6
: non-tax revenue 7,863 53.7
of which: NAMA transfer to Exchequer 2,000 -
of which: Rainy Day Fund transfer to Exchequer 1,500 -
: appropriations-in-aid 17,437 31.4
Total expenditure 94,781 23.0
: current 75,637 26.0
: capital 9,649 31.0
: non-voted expenditure 9,495 -1.5
Exchequer balance -12,316 -
compares with surplus of €645 million in 2019
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Revenue developments
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Contributions to annual tax change, 2020 vs. 2019, € millions
73
492
12439
223
2,694
23575
945
54,000
55,000
56,000
57,000
58,000
59,000
60,000
2019 customs excise duties CGT CAT income taxes VAT motor tax stamp duties CT 2020
€59.3 bn
€57.2 bn
blue = taxes that
rose in the yeargrey = taxes that fell in the year
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Tax revenue performance: individual tax headings
change vs 2019
outturn €m per cent
Income Tax 22,711 -224 -1.0
VAT 12,424 -2,694 -17.8
Corporation Tax 11,833 +945 8.7
Excise 5,448 -493 -8.3
Stamps 2,090 +575 +38.0
CGT 951 -125 -11.5
Motor Tax 939 -23 -2.4
Customs 276 -73 -20.9
CAT 494 -39 -7.3
Unallocated - - -
Total 57,165 -2,149 -3.6
Note: figures are rounded
€580m receipts arising
from a complex tax issue
distribution of employment losses;
self-employed = down slightly
higher corporate profitability –
parts of multinational sector
fall in consumer spending / higher savings
although some = “warehoused”
lower car sales, etc.
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Expenditure developments
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Voted current expenditure: 2020 vs 2019 € millions
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
total
social protection
health
housing
other
2019 2020
current expenditure = €75.6 bn.
€15.6bn, 26.0% year-on-year increase
additional Covid-related expenditure on:
1). health [€3.0bn, 18.1% year-on-year]
2). social protection [€9.8bn, 47.1% year-on-year]
^ gross figures
9 Rialtas na hÉireann | Government of Ireland
0 2,000 4,000 6,000 8,000 10,000 12,000
total
business
health
transport
other
2019 2020
capital spending = €9.6 bn.
€2.3 bn, 31% year-on-year increasecovid-related funding to business
Voted capital expenditure: 2020 vs 2019 € millions
^ gross figures
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Conclusion
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Summary
• 2020 tax revenue = €57.2 billion
- annual decrease of €2.1 billion
- VAT and Excise down €3.2 billion on 2019
- resilience in income tax, CT
annual increase of 1.1 per cen
• 2020 gross voted expenditure = €85.3 bn.
- €17.9 billion ahead of last year1,1 billion ahead of profile
- current = 26.0 per cent ahead of 2019
- capital = 31.0 per cent ahead of 2019
• Exchequer deficit of €12.3 billion at end-2020
- deterioration of just under €13 billion vs. surplus recorded at end-2019
- primarily driven by increases in expenditure resulting from Covid-19
• Estimated general government deficit of c. €19 billion- around 5½ per cent of GDP
- final figure complied by CSO (April)