REVENUE and spending figures for 1996 show that the Government is in a strong position to make significant tax concessions in the Budget. The figures show that the Government's books are at their healthiest in over 20 years with a surplus of £292 million on the current account.

Despite exceeding the day-to-day spending targets set in the January 1996 Budget and borrowing more than expected for capital purposes, very strong tax revenue boosted Government funds. At year end the total Government borrowing requirement, at £437 million, was £292 million below the £792 target set in the Budget.

A breakdown of the outcome for 1996 shows that net current spending exceeded the Budget target by £40 million. The over-spending came from the Departments of Health, Agriculture and Justice. Spending at the Department of Health was £37 million over Budget - made up mainly of £15 million for the Community Drugs Scheme, superannuation payments of £7.5 million and £5 million to reduce waiting lists.

Agriculture was about £80 million over target, with £70 million attributed to BSE spending. Payments to the Garda were £20 million above target because of Border duties relating to the BSE crisis. The overruns were offset by savings in other areas including £45 million at the Department of Social Welfare where PRSI buoyancy covered the Christmas payment bonus.

Overall net current spending rose by 5 per cent compared with a Budget estimate of 4.6 per cent. Gross spending - when PRSI and other factors are included - was £147 million ahead of target at £12,234 million, a nominal rise of 6.4 per cent and a real rise of 4.7 per cent after inflation.

Expenditure on Central Fund Services at £3,161 million was £107 million above target. Interest payments on the national debt cost £50 million less than expected, and there were savings in EU contributions of £44 million (in addition a refund of £48 million from the EU appears under non-tax revenue).

But extra costs included £100 million paid into the Small Savings Reserve Fund, set up to meet interest payments on savings certificates, and there was an additional payment of £103 million (in addition to the £76 million allocated in the Budget) into the pension funds of An Post and Telecom.

On the revenue side current receipts came to £12,954 million, some £520 million above target. Buoyant tax revenue under all headings pushed receipts £452 million above target. The outcome for the year was a 10.5 per cent rise in tax revenue compared with an estimate of 6.5 per cent.