Tax growth remains steady to end-October, sustained investment on public services and infrastructure – Ministers Donohoe & Chambers
- Foilsithe:
- An t-eolas is déanaí:
- Today’s Exchequer returns show that at a headline level, tax receipts to end-October were ahead by €2.4 billion (3.2 per cent) on last year;
- When once-off tax receipts arising from the Court of Justice of the European Union (CJEU) ruling are excluded, tax revenues amounted to €77.0 billion, up by €3.8 billion (5.3 per cent) on the same period in 2024;
- Income tax receipts to end-October were €28.7 billion, up by €1.1 billion (4.1 per cent) compared to this time last year;
- VAT receipts of €19.1 billion were up by €0.8 billion (4.3 per cent);
- Corporation tax receipts (excluding CJEU revenues) of €19.4 billion were up by €1.1 billion (6.3 per cent);
- Total gross voted expenditure in in the period amounted to €87.1 billion, up by €6.2 billion (7.7 per cent) on last year and €0.03 billion (0.0 per cent) behind profile.
- A headline Exchequer deficit of €0.9 billion was recorded to end-October. This compares to a surplus of €1.3 billion last year, a decline of €2.2 billion; (yearly comparison)
- Excluding CJEU receipts, an underlying Exchequer deficit of €4.2 billion was recorded in October;
- The underlying deficit largely reflects the transfers to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.
Tax receipts of €78.8 billion were collected to end-October, up by €2.4 billion (3.2 per cent) on the same period of 2024. When once-off tax revenues arising from the CJEU ruling are excluded from both 2025 and 2024, ‘underlying’ tax revenues stood at €77.0 billion, a €3.8 billion (5.3 per cent) increase on last year.
Income tax receipts of €2.9 billion were collected in October, up by €0.2 billion (5.5 per cent) on last year. On a cumulative basis income tax receipts now stand at €28.7 billion, ahead of last year by €1.1 billion (4.1 per cent).
October is not a VAT-due month, with receipts of €0.3 billion collected. Cumulative VAT receipts of €19.1 billion are ahead of last year by €0.8 billion (4.3 per cent).
Corporation tax receipts of €1.1 billion were collected in October. Excluding the CJEU receipts received in October of 2024, this is up by €0.7 billion. On a cumulative basis and excluding CJEU receipts, corporation tax receipts of €19.4 billion are €1.1 billion (6.3 per cent) ahead of the same period last year.
Non-tax revenue to end-October was €2.7 billion, up by €1.8 billion on the same period last year, largely driven by transfers to the Exchequer arising from the CJEU judgement (mainly interest payments).
Total gross voted expenditure in in the period amounted to €87.1 billion, up by €6.2 billion (7.7 per cent) on last year and €0.03 billion (0.0 per cent) behind profile.
At a headline level, an Exchequer deficit of €0.9 billion was recorded to end-October. This compares to a surplus of €1.3 billion last year, a decline of €2.2 billion. Excluding the once-off receipts arising from the CJEU ruling, there was a deficit of €4.2 billion, a decline of €2.3 billion on last year, largely due to the transfer to the Infrastructure, Climate and Nature Fund.
The Minister for Finance, Paschal Donohoe T.D. said:
“Today’s figures are broadly consistent with the updated fiscal projections published as part of Budget 2026. Those projections, which I published on Budget Day, incorporated a substantial upward revision to revenues, mostly on corporation tax.
However, as I have said many times this remains a highly volatile revenue stream and elevated levels of receipts cannot be relied upon to continue indefinitely. That is why we have transferred some €16 billion in ‘windfall’ tax receipts into the Future Ireland Fund and Infrastructure, Climate and Nature Fund, and why we intend to continue running budgetary surpluses.”
The Minister for Public Expenditure, Public Service Reform and Digitalisation, Jack Chambers T.D. said:
“October’s Exchequer figures confirm the expenditure priorities set out in last year’s budget to enable the delivery of high-quality public services and infrastructure to better the lives of our people. Current spending – which funds our schools, hospitals, social protection commitments and other public services – is broadly in line with our plans at this point of the year, at just 0.4 per cent ahead of profile.
Capital spend is now up 20.8% year on year, reflecting this government’s continued commitment to enhance our country’s infrastructure. In 2026, the Government will allocate €19.1 billion for capital investment – marking the highest level of capital funding in the State’s history. This investment will support major infrastructure projects across housing, water, energy, transport, health, education, justice, arts and sport, laying the foundation for long-term growth and resilience. But funding alone will not suffice.
To address Ireland’s infrastructure deficit, my department recognises the urgent need to radically overhaul how public projects are delivered, with a forthcoming action plan aimed at tackling systemic barriers—including legislative, regulatory and administrative hurdles—will be outlined in the upcoming Barriers to Delivery report in the coming weeks.”
ENDS
Notes to editors:
- €3.1 billion in corporation tax was received in October 2024 arising from the CJEU ruling. This year, €3.3 billion was received (€1.7 billion in corporation tax receipts and €1.6 billion in non-tax revenues).
- There was a transfer from the Exchequer to the Future Ireland Fund in both 2024 and 2025; there was no transfer to the Infrastructure, Climate and Nature Fund in 2024.