Treasury registered a surplus of 5,000 million euros at the end of July

Public finances recorded a surplus of 5,000 million euros at the end of July, according to data published this afternoon by the Treasury Department.

This compares with a deficit of 5.7 billion euros at the end of July last year.

The continued change in public finances is explained by higher tax filings and lower levels of spending related to Covid.

The recovery of public finances continued in July. The Finance Department’s preferred measure of a 12-month rolling account now puts the Treasury surplus at €3.4bn.

The three main tax sources continue to show a solid performance.

For the seven months of the year to the end of July, income taxes rose 2.4 billion euros or 17% from the same period last year to 16.7 billion euros.

VAT receipts increased by €2.2 billion or 23% to €11.9 billion. Corporate tax has risen 51%, or €3 billion more, to €9 billion.

Part of the VAT increase is due to higher spending this year compared to the closing periods in early 2021.

VAT collection in the month of July was 13% higher than that of July 2021.

This compares with a 23% growth in cumulative VAT receipts this year through the end of last month, indicating that the so-called “base effects” related to the recovery from Covid lockdowns are beginning to fade.

It may also reflect declines in consumer confidence recorded last month.

The massive increase in corporate tax is due to multinational companies that operate heavily in areas such as pharmaceuticals and computer services.

Voted spending was 1.8 billion euros less than in the same period in 2021.

Tax revenue in July was €6.6 billion, up €900 million or 15% more than in July 2021.

Cumulatively through the end of July, tax revenue of €43.5 billion was collected, €8.3 billion or 23.5% more than in the same period of the previous year.

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