THE DEPARTMENT OF Finance has released its ‘White Paper’ ahead of the upcoming Budget, which confirms the Government will have a surplus of €10.3 billion for this year.

The ‘White Paper’ is published every year ahead of the budget and provides estimates of Ireland’s receipts and expenditure for the coming year. 

The figures presented are projections based on current information and are subject to revision when end-year figures become available.

As well as a forecasted surplus of €10.3 billion for this current year, the Department is also forecasting a surplus of €8.7 billion for 2025.

The paper states a predicted, end-of-year Exchequer surplus of €1.07 billion this year, and €1.45 billion at the end of 2026.

It also estimates that the Exchequer balance would be a €2.2 billion deficit this year if receipts arising out of the Apple tax ruling were excluded.

Excluding windfall corporation tax receipts, there would be a deficit of €7.3 billion this year, deepening to €9.8 billion next year.

“The White Paper forecasts strong economic growth in 2025 and this is now set to continue into 2026,” Finance Minister Paschal Donohoe told reporters yesterday. 

“On this basis, total tax revenue at the end of next year is now projected to be €106 billion on a pre-Budget basis.”

He added: “We expect further increase in corporate tax this year and next, reaching €34 billion for next year.

“This means that for that year, we’ll yet again see corporate tax playing a large role in our total tax revenue.”

Donohoe said the Budget will see the government demonstrate how it intends to use these resources “to invest in our future, to address the critical challenges of infrastructure and housing, jobs, prosperity and stability at a time of global challenge.”

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He also confirmed that there would be no changes to personal taxes in the Budget because it would prioritise decisions “with regard to jobs and investment”. 

Pressed on whether that meant there would be no changes to tax bands, Donohoe said: “I’m indicating that we’ve a tax package overall of €1.5 billion.

“That is the biggest tax package that I believe is safe to implement within our economy.

“If we would go beyond €1.5 billion, that runs the risk over time of narrowing our tax base and undermining safety in our public finances and the ability to pay for our public services in the future.”