The end of December 2016 exchequer records show the national deficit standing at €1,012 million. This compares to a deficit of €64 million in the same period last year. According to the information note issued by the Department of Finance, the €949 million increase in the deficit is driven by an annual increase in voted expenditure, an expected decline in banking related receipts and lower non-tax receipts. Increased tax receipts partially offset this. Interestingly when the one-off capital receipts from banking related transactions from 2015 and 2016 are excluded the Exchequer shows an underlying year on year improvement of €864 million.

Tax revenue of €47,864 million was collected during 2016. This represents a year-on-year increase of €2,263 million (5%) and is €639 million (1.4%) above profile. Tax revenues for the month of December were €151 million (4.5%) behind the monthly target.

For 2016 in its entirety, income tax receipts (which include the universal social charge) were above target by €174 million (0.9%). Corporation tax receipts were strong showing €737 million (11.1%) ahead of target, while VAT was €439 million (3.4%) down on profile. Receipts from capital acquisitions tax were €41 million (10.9%) above profile while capital gains tax receipts showed a strong position being €232 million (39.4%) ahead of target.

The amount of tax collected in 2016 is at an historic high and means that the public finances are brought closer to a balanced budgetary position. While the response to the figures has been positive, looking critically at the figures, in overall terms of actual amounts collected during 2016, €400 million less tax came in during December 2016 compared to December 2015. Furthermore VAT, an indicator of consumer spending for 2016 is €2 billion down on 2007 figures while income tax receipts are up by just under €6 billion. This shows that more tax is being collected from workers in the country. With the effects of Brexit largely unknown, 2017 will be an interesting year.