Figures recently released by the Department of Finance shows continuing signs of improvement for the domestic economy. Overall the figures show a solid start to the year with the figures broadly in line with expectations. They reflect an improvement in the economy including a reduction in unemployment, growing income tax receipts while expenditure on public services remains within budget. 

Some headline figures to the end of March are as follows:

1. The exchequer deficit is currently €2.3 billion versus €3.7 billion last year;
2. Income Tax receipts increased 3.5%;
3. VAT is up 6.4%;
4. Corporation taxes are down 35.1% (this was largely forecast due to a non-recurring payment from a large corporation);
5. Excise duties are up 11.5%;
6. Capital Gains Tax is up 40.9%; 
7. Controversially, Local Property Taxes were recorded at €214m to the end of March;
8. Customs tax and Capital Acquisitions Taxes are up 9%. 

While the cost of servicing our national debt has increased by 2.3% to €1.97 billion, Ireland should be in a good position to service debt up to 2019/20 at least. Additionally, the Government is committed to reducing the current account deficit to under 3% by 2015 meaning our national debt will rise at a slower pace. 

Overall the stabilisation and turnaround of the economy is now gaining traction. While it will still take time for unemployment figures to come down and for de-leveraging to work its way out of the system, the Irish economy is now moving in a more positive direction compared to recent years.