The latest Exchequer figures published yesterday show that the public finances are stabilising. Tax revenues and public spending are in line with expectations and shows that we are meeting the targets set on Budget Day.

The Exchequer deficit was €6.961 million at end of April 2010 compared to €7,316 million at end April 2009.

Tax Revenue

• Tax receipts are on target to end April 2010. The end April year on year decline is 10.8% which is an improvement on at end March figure of 15%.

• As the economy returns to positive growth, it is forecast that tax revenues will be just over €31 billion in 2010 a decline of 6%.

Voted Expenditure

• The total net expenditure at the end of April 2010 was €14,362 million, €1.3 billion or 8.1% below the same period in 2009.
• Net voted expenditure has been reduced from €13,775 million in the first four months of 2009 to €12,992 in the same period in 2010 a decrease of €783 million or a 5.7% decrease.
• Net voted capital expenditure has been reduced from €1,858 million in April 2009 to €1,370 million a decrease of €236 million or 14.6%.
• These differences show reduced expenditure as a result of decisions taken by the Government.

International Support for Our Approach

European Commissioner Ollie Rehn

“Ireland entered into the crisis in a very early phase and if had a very deep early recession. Subsequently Ireland took very bold and credible measures of fiscal consolidation, which is now paying off. The Irish economy is recovering………… I would actually agree with Brian Lennihan that it is clear the worst is over and the Irish economic is now recovering” - 5 May 2010.

Business Editor of The Times

The Business Editor of the Times, David Wighton writing in the paper today (6 May 2010) commenting that the “medium-term prospects for a young and well-educated workforce are reasonably bright”. Ireland’s export machine — which accounts for 80 per cent of GDP — “hardly skipped a beat in the downturn, helped by the resilience of its pharmaceutical and software sectors”. Ireland’s heavy reliance on low-growth European markets is “hardly ideal”. But the weakness of the euro “will help in other markets and competitiveness is recovering, with wages already starting to fall” – The Times 6 May 2010.

Wall Street Journal

“The Irish government has repeatedly taken extraordinary steps to fix its financial problems” – 31 March 2010.

Financial Times Lex Column

“Ireland is not in the same league as Greece: the former Celtic Tiger has a credible recovery plan and has bounced back before. Its public debt, now at 64.5 per cent of output, from 25.2 per cent pre-crisis, is certainly more manageable than Greece’s ruinous 110 per cent, not least because Dublin – unlike Athens – has completed its funding requirements for this year” – 28 April 2010.