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Dublin: 12 °C Wednesday 15 July, 2020

Minister for Finance says corporation tax take is actually €1 billion higher than expected

As a result, Paschal Donohoe expects the Budget to balance rather than run a deficit as had been expected.

Image: Sam Boal/

MINISTER FOR FINANCE Paschal Donohoe has said that the corporation tax take for the year will be €1 billion more than was originally expected.

The government’s projections of €8 billion have been exceeded due to changes in international accounting regulations, which means that multinational companies will be footing a much larger bill in Ireland this year, RTÉ reported.

This increased tax-take is unlikely to reoccur in future years, with €700 million of it deemed a once-off, and set to plug a shortfall in health spending in Budget 2019.

The Budget had been expected to run a deficit, but this will mean the government will balance the books heading into next year.

Addressing the Oireachtas Finance Committee late last month, Donohoe said that the government is “closing in on a balanced headline budgetary position”. 

“The focus of Budget 2019 will be to sustain our recent progress and to maintain our careful management of the public finances,” he added. 

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Speaking today, Donohoe also said he would press ahead with the allocation of €500 million to establish the Rainy Day Fund. 

He added he expected savings of €170 million from other departments, as well as extra spend of €200 million in PRSI payments this year. 

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Sean Murray

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