In February of this year, the Irish Government saw a boost in its finances due to record employment numbers and high income tax receipts. The latest figures from the exchequer reveal that in the first two months of this year, income tax brought in €5.3 billion, marking an advancement of 5.7% compared to the same time the previous year. This rise coincides with an increase in employment numbers in the Irish economy, with the final quarter of the previous year recording a peak of 2.71 million people at work.
Across the board, tax receipts reached €12 billion by the end of February, marking an increase of €630 million, or 5.5%, compared to the same period the previous year. This leap was largely driven by income tax and VAT receipts. However, February’s sales tax did bring in €4.3 billion, marking a 4.8% rise compared to the same time the previous year. However, VAT receipts for February were only €428 million as February is a non-VAT month.
When it comes to corporation tax, February is not a significant month either. Over the two-month period, only €583 million was collected in corporation tax, a reduction of almost 10% year on year. Despite this, the previous year saw a record €24 billion collected in corporation tax, ranking it as the Government’s second-biggest tax channel, after income tax.
Up-to-date figures show that at the end of February, the exchequer’s deficit was only €100 million. This is a notable improvement from the same period the previous year, which saw a recorded deficit of €2.5 billion, meaning an improvement of €2.4 billion. Over a 12-month period, it is reported that the exchequer had a surplus of €3.6 billion.
Furthermore, total gross voted expenditure for the two-month period equalled €15 billion. This was €2.7 billion or 22% more than the equivalent period in 2023, according to the most recent data.