Irish budget deficit hits 10.8bn euros in H1

DUBLIN: Ireland is on track to meet its fiscal targets for this year, the finance ministry said on Monday after announcing a headline budget deficit of 10.8 billion euros in the first half of this year compared with a shortfall of 8.89 billion euros a year ago.

Stripping out the three billion euros funnelled to Anglo Irish Bank and Irish Nationwide in January, the budget deficit in the first half would have been 7.8 billion euros, a reduction of 1 billion euros on the previous year.

Tax revenues stood at 15.3 billion euros, 0.7 percent below target, due to weaknesses in sales tax returns and corporate tax returns as private sector demand continued to fall.

"Although there is some weakness in certain tax-heads, the budget day target for tax revenue in 2011 of 34.9 billion euros remains achievable," Finance Minister Michael Noonan said in a statement.

Copyright Reuters, 2011