The latest Exchequer returns record a deficit of €11.6 billion to end-October 2020. Cumulative tax receipts are down €2.3 billion on last year, with much of the deficit owing to increased voted expenditure. While the figures are substantial, Ireland is considered to be one of the Member States least affected by the pandemic in the latest EU Economic Forecasts. Tax revenues for the month of October were down €1.2 billion compared to the same period last year, owing to the introduction of the CRSS and a fall in corporation tax receipts.

October tax receipts have been substantially impacted by two key issues:

• Revenue have held back €550 million to help fund payments expected to be made under the CRSS in November, with €275 million of this coming from income tax and corporation tax receipts; and
• Returns are significantly below those received in October 2019, which was forecasted in the Department of Finance’s projected outturn for 2020, published at Budget 2021.

Corporation tax receipts are down almost €600 million on October 2019, after excluding the CRSS-related deduction.

The European Commission’s Autumn 2020 Economic forecast for Ireland emphasises that the strong performance of multinational enterprises in the first part of the year cushioned the economic impact of the pandemic in Ireland. While the impact of the pandemic is said to be less than that of other Member States, “risks to the outlook remain exceptionally high”.