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tax receipts

Exchequer surplus of €7.3 billion recorded in year to the end of October

This compares to a deficit of €7.4 billion in the same period last year.

AN EXCHEQUER SURPLUS of €7.3 billion was recorded in the year to the end of October.

A deficit of €7.4 billion was recorded in the same period last year.

This surplus is said to be “primarily driven by strong growth in tax revenues”, which were 25% higher the same period last year, at €63.9 billion.

That’s up €13 billion on last year, but this comparison is said to be “flattered by a number of factors, including a lockdown in the opening months of last year.”

Income tax receipts are described as “robust” at €23.9 billion to the end of October, up 15% when compared to last year.

The Department of Finance says this reflects “continued strength in the labour market”.

Meanwhile, corporation tax receipts were up €6.6 billion when compared to the same period last year, at €16.2 billion.

In the month of October, Corporation tax receipts amounted to €2.3 billion, an increase of over €0.8 billion when compared to the same period last year.  

However, the Department said: “This increase primarily relates to profits in a small number of companies in the multinational sector, which are unlikely to be repeated next year.”

Elsewhere, VAT receipts were up almost 23% when compared to last year, at €15.5 billion.

While this comparison to 2021 is impacted by Covid-19 and the restrictions that were in place last year, this year’s figure is also 23% higher than the same period in 2019, pre-pandemic.

Finance Minister Paschal Donohoe said the figures show that “tax receipts remain strong at the start of the fourth quarter”.

However, Donohoe added: “The strength of potentially volatile corporate tax receipts continue to provide an artificially positive picture of the public finances.

“As I have warned on many occasions, while these receipts are welcome, it is imperative that that Government does not build up permanent fiscal commitments on the basis of revenues that may prove transitory.”

Meanwhile, the gross voted current expenditure was €61 billion at end October, which is €1.3 billion ahead of profile.

The Department said this reflects “additional priority funding for non-core supports including the cost of living measures, Covid supports and the State’s response to the War in Ukraine”.

Public Expenditure Minister Michael McGrath T.D. said “this demonstrates a responsive approach to the external challenges faced by our economy and society”.

He added: “These figures reflect the first stages of the Cost of Living Supports announced as part of Budget 2023, including Social Welfare payments and the first winter electricity credit which will be seen on household electricity bills over the coming weeks.”

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