Exchequer swings to deficit, but Harris calls figures 'encouraging' as tax growth remains intact

THE EXCHEQUER WENT from a €2.8 billion surplus last year to a €4.7 billion deficit this year, according to the end-April figures released by the Department of Finance today. 

This indicates a swing of €7.5 billion.

However, the government is keen to highlight that it is not as bad as it looks, given that last year’s numbers were boosted by one-off windfall revenues resulting from the Apple Tax court ruling. 

The timing of transfers this year from the Exchequer to the Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF) have also skewed the numbers, with ministers saying this reflects the fact that the year to date has seen transfers to both funds totalling €3.3 billion.  

To date, almost €20 billion has now been invested in our long-term savings funds. 

When that is factored in, instead of a deficit of €7.5 billion, there has been a €4.2 billion deficit. 

Advertisement

Tax revenues up 

Turning to tax revenue, the latest Exchequer figures to end-April stood at €28.0 billion, which was €0.6 billion (2.1%) behind the same period last year.

However, when once-off receipts are excluded, total tax receipts were up on last year by €1.1 billion (4.2%).

Gross revenue to end-April stood at €36.5 billion, a decrease of €2.0 billion (5.2%) compared to last year.

Income tax receipts of €3.7 billion were recorded in April, €0.2 billion (4.8%) ahead of April 2025. On a cumulative basis, income tax receipts of €12.4 were €0.7 billion (5.7%) ahead of last year.

When it comes to corporation tax receipts, despite warnings of headwinds ahead, numbers are up, with €0.5 billion collected in the month.

This was up on the same month last year by €0.4 billion. On a cumulative basis, receipts of €3.5 billion were up slightly, by €0.3 billion (8.6%)

The most recent excise duty receipts show that €0.6 billion was collected in April, down slightly by €21 million (3.6%) on the same month last year.

Tánaiste and Minister for Finance, Simon Harris said the Exchequer returns are encouraging, highlighting Ireland’s economic resilience during a period of deep global uncertainty. 
 
“Employment is at record levels, and the income tax returns reflect a strong labour market. Overall tax revenues for April amounted to €5.3 billion, up by almost 8% on the same period last year, reflecting strong income tax, VAT and corporation tax growth for the year to date,” he said. 
 
Harris said the strong revenues provide us with the firepower necessary to support people throughout the coming months.
 

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.
Learn More Support The Journal