IRELAND’S EXCHEQUER SURPLUS stood at €3.8 billion at the end of August, new figures from the Department of Finance show.

Overall, €7.4 billion was collected in tax in August, which is €2.1 billion (40.2 per cent) more than was collected in August 2023.

There was a significant increase in corporation tax receipts in August, which amounted to €3.7 billion, up by €1.9 billion (108.7%) on the same month last year.

However, “the bulk of this increase likely reflects a technical timing factor which depressed receipts earlier in the year”, the Department of Finance explained in a statement, adding that on a year-to-date basis, corporation tax receipts of €16.3 billion were up €3.6 billion (28.4%) on the same period last year.

Income tax receipts of €2.6 billion were collected in August, up by 3.3% on last year, while excise duties of €0.5 billion were collected, up by 9.5%.

Tax revenues overall in the year-to-date were €59.8 billion as of the end of August, which is €6.7 billion (12.6%) higher than the same time last year.

Meanwhile, total gross voted expenditure to end-August came to €63.6 billion – €7.3 billion (12.9%) above the same period in 2023.

In a statement, Minister for Finance Jack Chambers said the tax figures show the “resilience” of the Irish economy.

“The most notable feature of the August performance was the substantial increase in corporation tax receipts. While much of the increase in August relates to a technical timing factor, and offsets a decline earlier in the year, in the year-to-date this revenue stream is now well ahead of last year,” Chambers said.

“However, as I have cautioned previously, these receipts are clearly subject to exceptional volatility. Put simply, there is no guarantee that these revenue streams will remain at this level indefinitely, and it is crucial that we do not build permanent spending commitments on the back of these,” he said.

“With the two new investment funds – the Future Ireland Fund and the Infrastructure, Climate and Nature Fund – we are setting aside a portion of windfall tax receipts to prepare for future fiscal challenges. At the same time, Government will continue to calibrate a budgetary policy that balances the need to address the pressures of today and while, at the same time, maintaining our public finances on a sustainable trajectory over the medium-term.

“Budget 2025, which Minister Donohoe and I will present to the Oireachtas on October 1st, will be framed on this basis.”