Ireland’s Finance Department Confirms €10.3 Billion Surplus

The Department of Finance in Ireland has announced a projected surplus of €10.3 billion for the current fiscal year. This announcement comes ahead of the upcoming Budget, following the release of the annual White Paper that outlines the government’s estimates for receipts and expenditures. The figures are preliminary and may be adjusted as final year-end data becomes available.

The White Paper indicates not only this year’s surplus but also forecasts a surplus of €8.7 billion for 2025. It predicts an end-of-year Exchequer surplus of €1.07 billion for the current year, with expectations of €1.45 billion by the end of 2026. The paper also highlights a potential €2.2 billion deficit if the receipts related to the Apple tax ruling are excluded.

Economic Growth and Tax Revenue Projections

Excluding significant windfall corporation tax receipts, the Exchequer balance would reflect a deficit of €7.3 billion this year, worsening to €9.8 billion in the following year. Finance Minister Paschal Donohoe stated that the White Paper forecasts robust economic growth in 2025, which is expected to continue into 2026. “On this basis, total tax revenue at the end of next year is now projected to be €106 billion on a pre-Budget basis,” he noted.

Further, Donohoe highlighted expectations for an increase in corporate tax revenue, projecting it to reach €34 billion next year. He emphasized that corporate tax will continue to play a significant role in overall tax revenue.

Budget Priorities and Tax Package Details

As the government prepares for the Budget, Donohoe emphasized the intention to utilize this surplus to invest in critical areas such as infrastructure, housing, and job creation. “We will demonstrate how we intend to use these resources to address the critical challenges of infrastructure and housing, jobs, prosperity, and stability at a time of global challenge,” he stated.

In response to queries about personal tax adjustments, Donohoe confirmed that there would be no changes, focusing on decisions related to jobs and investment. He clarified that the overall tax package is set at €1.5 billion, the largest amount deemed safe for implementation within the current economic environment. “Going beyond €1.5 billion runs the risk of narrowing our tax base and undermining public finances,” he added.

The forthcoming Budget is anticipated to reflect these projections, highlighting the government’s commitment to fiscal responsibility while addressing the pressing needs of the nation. The financial landscape remains dynamic, and the surplus presents both opportunities and challenges as Ireland navigates its economic future.