The Minister for Finance will have approximately €4 billion more than expected to work with when putting together his Budget, according to figures released yesterday by the Department of Finance.
The figures are based on the pre-Budget white paper which was published yesterday. Brian Cowen. Exchequer returns data shows the Government took in €3.6 billion more in taxes than in 2004, an substantially ahead of the €1.9 billion rise forecast in Budget 2004.
Opposition parties have called for a firm investment to boost services in health and childcare after the figures from the Finance Department were released.
David Stanton, Fine Gael's childcare spokesman, said Wednesday's Budget must produce a targeted childcare package that focuses on more than simply increasing child benefit.
"The Government must deliver this year as parents have waited too long already for a comprehensive response to their children's needs," the TD said. "The package must substantially increase paid parental leave especially in the first year after a child is born."
Mr Stanton added: "It must provide financial support to all parents - those who care for their children at home and those who avail themselves of quality childcare outside the home."
Finance Minister Brian Cowen is expected to deliver a €2 billion plus Budget next week with figures showing tax revenues are expected to reach €42 billion next year.
The latest tax projections have shown the Government received €3.6 billion more in taxes than last year - an increase on the €1.9 billion forecast this time last year.
The borrowing requirement for next year is expected to come in at significantly less than €3 billion. Stamp duties are expected to come in at €2.5 billion for the full year - over €800 million more than expected - while revenues from VAT were €760 million ahead of target.
Sinn Fein's finance spokesman, Caoimhghin O'Caolain, said: "This massive Budget surplus must now be used to make targeted improvements in services with special emphasis on our ailing public health service and on the need for a comprehensive programme of early childhood care and education.
"Never in the history of the State has any Government had at its disposal such revenue - a surplus of €2.95 billion in 2005 compared to €1.89 billion in 2004." Fine Gael's Richard Bruton said half of the Exchequer €1,700 million tax overshoot could be used to lower the 20 per cent tax rate.
Mr Bruton said the extra tax collected from households will be more than double what the Finance Minister promised at the last budget. "In total the increase in tax collected in 2005 will represent €2,500 more per household than was collected in 2004," he said.
Mr Bruton said if the Government set aside half of the unexpected bonus in tax receipts in 2005 it could lower the tax rate by one point to 19 per cent at a cost of €450.
"If he pursued this course of action the Minister would still have sufficient resources to fund major programmes of improvement in Social Welfare, childcare and care of older people," he added.