GOVERNMENT SPENDING OUTSTRIPPED tax revenue in the first quarter of this year, even as overall tax receipts increased, new figures from the Department of Finance show.

The Exchequer recorded a deficit of €200m in the first three months of this year, mostly the result of paying into pension and infrastructure funds.

The increases in tax revenue came from taxation on income and on consumer products. 

Total tax receipts for the first three months of the year amounted to €22.6 billion, a 3.4% increase on 2025.  

Income tax receipts so far this year totalled €8.7 billion, a rise of 6.1%, while VAT receipts of €8 billion made for a 5.3% increase compared to 2025. 

Corporation tax revenue, on the other hand, fell by €100m. 

State spending hit €26.4 billion in the first three months of this year, €1.6 billion ahead of 2025.

Tánaiste and Finance Minister Simon Harris described the tax revenues as “robust”. 

“The continued strength in income tax and VAT is a testament to the fundamental resilience of the Irish economy,” Harris said. 

He also acknowledged that the global economy was in “a period of profound uncertainty” but said the government was in “a strong position to respond as needed to protect households and businesses”.