The Government's finances were €240 million in deficit at the end of July according to the latest Exchequer figures released today by the Department of Finance.
The end-July exchequer returns show that receipts from income and corporation tax are lagging behind those achieved this time last year. This is consistent with other data suggesting the economy is still in a downturn with wages coming under pressure in a weak labour market.
Total income tax receipts stood at €4,508 million at the end of July this year compared to €4,703 in the equivalent period in 2002. Corporation tax of €3,016 million is down from €3,337 million last year.
VAT returns and stamp duty receipts are higher as expected following changes in the December budget which imposed VAT on new houses and higher stamp duty for house buyers in the buoyant housing market.
Voted expenditure up to July was €16,598 million compared to €15,567 million though timing factors and the reallocation of budgets across some Government departments makes like-for-like comparison with last year difficult.
Opposition parties said the latest news was the result of the Government's reckless economic policies.
Fine Gael's finance spokesperson, Mr Richard Bruton,said the management of the public finances have been exposed as an "economic joyride".
"What these figures tell us is that the Government's need to introduce stealth taxes, failure to deliver on insurance reform and infrastructure delivery meansthat our competitiveness is undermined and jobs are lost, spending is curtailed and the budgetary situation deteriorates," he said.
Labour's enterprise spokesperson, Mr Brendan Howlin claimed the figures showed "the sheer economic folly" of Government policy" and accused it of "further damaging competitiveness by cutting vital spending on infrastructure".
He said public services across the country were"suffering as a result of this mauling by a Government which has managed our finances for base political motives, and greatly accentuated the problems whichIreland faces in getting through the international downturn."