Latest Exchequer figures show that tax revenues to the end of February were €12 billion, up 5.5 percent on the same period last year. Income tax receipts of €5.3 billion were recorded, a 5.7 percent annual increase, with VAT receipts up 4.8 percent compared to end-February 2023 figures. At €0.6 billion to end-February, corporation tax receipts were slightly down on last year.
An Exchequer deficit of €0.1 billion was recorded at the end of February (the deficit at the end of February 2023 was €2.5 billion, although this included the transfer of €4 billion to the National Reserve Fund). On a 12-month rolling basis, the Exchequer recorded a surplus of €1.5 billion. The underlying position for the period is a decrease of €1.5 billion with increased public expenditure offsetting growth in tax receipts.
Commenting on the latest figures, Minister for Finance, Michael McGrath said:
“Today’s figures largely represent the continuation of trends observed last month and towards the end of last year. The 7% increase in tax revenues in February compared to the same month last year is to be welcomed, and is further evidence in particular of the strength of the labour market. The 5.5% growth in tax revenues across the first two months of the year is broadly consistent with our forecast on Budget day. However, I would emphasise that it is too early at this stage in the year to draw any conclusions about the trajectory of tax receipts, particularly before the key corporation tax payment months. The coming months will provide a firmer indication of the pattern of tax receipts across the year. Overall, our economy has proven to be remarkably resilient against the backdrop of significant external uncertainty. In a more shock-prone world, it is essential that we maintain our public finances on a sustainable footing: this is the best way to ensure that we are in the strongest possible position to respond to external challenges. Work on drafting the legislation to provide for the Future Ireland Fund and the Infrastructure, Climate and Nature Fund is now at an advanced stage, and I look forward to bringing it to government shortly.”