A SURGE in corporate tax receipts has cut exchequer borrowing and left the Government well on course to undershoot its Budget borrowing target, according to the latest Department of Finance figures.

The figures show that exchequer borrowing figure in the first seven months of the year was just £36 million, compared with the £455 million borrowing figure shown in the first six months. The large surplus in July reflects major payments of corporate taxation, with total tax receipts in the month of over £1.3 billion.

The Government's full year exchequer borrowing target is £729 million, but Department of Finance officials have already forecast that the final figure could be £100 million to £150 million lower. Some private sector forecasters believe that the total could be even less.

Total tax receipts in the first seven months of the year came to £7.29 billion, compared with £6.5 billion a year earlier. Supply services spending was £6.13 billion, compared to £5.55 billion last year.