The Exchequer returns to end-May show a 12-month rolling Exchequer deficit of €12.2 billion. Tax revenues were €570 million higher than profiled, with VAT returns at the same level they were in May 2019, despite the restrictions imposed throughout March and April this year.

The Minister for Finance, Paschal Donohoe TD, commented that; “VAT receipts, in particular, show that both consumers and business are feeling more confident about the future.”

May is a VAT due month and VAT receipts were €2.3 billion, €265 million or 12.5 percent higher than profiled.

Income tax receipts continued to be robust in May, ending the month €197 million or 9.9 percent higher than profiled. May is a relatively significant month for corporation tax receipts and returns of €2.4 billion were €120 million, or 5.4 percent higher than profiled, although down €196 million on a year-on-year basis as May 2020 was an exceptionally good month.

Total gross voted expenditure to end-May 2021 amounted to €33 billion, €1.5 billion or 4.6 percent ahead on the same period in 2020 and €1.4 billion, or 4 percent below profile. The underspend vis-a-vis profile is the result of a number of factors including the closure of construction sites earlier in the year.

The Fiscal Monitor May 2021 provides more information.

The CSO also published the Quarterly National Accounts for the first quarter of 2021 on 4 June, which showed that Modified Domestic Demand (a proxy for the domestic economy) fell by 5 percent year-on-year, in line with expectations.

The Minister for Finance, commenting on the publication, said “Encouragingly, while the level of restrictions was comparable with that of the first lockdown in the spring last year, the fall in domestic economic activity was much less severe on this occasion.”