Steady growth in tax receipts in January; expenditure reflects continued investment in Public Services and Infrastructure
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From: Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
- Published on: 6 February 2025
- Last updated on: 12 April 2025
Steady growth in tax receipts in January; expenditure reflects continued investment in Public Services and Infrastructure – Ministers Donohoe & Chambers
- tax receipts in January were €10.1 billion, up €2.3 billion on January last year
- excluding once-off receipts arising from the Court of Justice of the European Union (CJEU) ruling of September 10th (€1.7 billion), underlying tax revenues were €8.4 billion, up €0.6 billion (7.2 per cent) on January last year
- income tax receipts in January amounted to €3 billion, up by €0.1 billion (2.8 per cent)
- VAT receipts of €4.1 billion, up by €0.2 billion (5.8 per cent)
- excise duty receipts of €0.5 billion were up €27 million (5.2 per cent) on January 2024
- total gross voted expenditure in January amounted to €9.2 billion, €1.7 billion (22.7 per cent) ahead of the same period last year
- excluding the CJEU receipts, an Exchequer surplus of €1.8 billion was recorded in January
Tax receipts amounted to €10.1 billion in the first month of the year, up by €2.3 billion on January 2024. Excluding €1.7 billion in once-off corporation tax receipts arising from the CJEU ruling of 10 September, ‘underlying’ revenues were €8.4 billion, €0.6 billion (7.2 per cent) higher than January last year.
Income tax receipts of €3 billion were up by €0.1 billion (2.8 per cent) while VAT receipts of €4.1 billion were up by €0.2 billion (5.8 per cent)^. January is generally the strongest VAT month of the year as receipts incorporate the Christmas trading period. Excise duties of €0.5 billion were up by €27 million (5.2 per cent) on last year.
Excluding CJEU receipts, corporation tax in January was modest at €90 million. January is not generally a significant month for this revenue stream.
Total gross voted expenditure to end-January amounted to €9.2 billion, up by €1.7 billion (22.7 per cent) on January last year.
A headline Exchequer surplus of €3.6 billion was recorded in January. Excluding CJEU receipts, the surplus stood at €1.8 billion, down by €0.4 billion on January last year.
Commenting on today’s figures, Minister for Finance Paschal Donohoe said:
“Today’s figures show that tax revenues continued to demonstrate steady growth at the start of the year. In particular, the ongoing expansion of income tax and VAT receipts are a positive indicator of the fundamental strength of our economy.
"However, there are clear risks ahead. As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment. This underlines the importance of continuing to pursue a balanced and sustainable fiscal policy. That is why Government has committed to using the once-off proceeds from the CJEU decision to improve our stock of infrastructure, as well as investing windfall tax revenues in the Future Ireland Fund to prepare for future challenges.”
The Minister for Public Expenditure, Infrastructure, Public Service Reform & Digitalisation, Jack Chambers said:
“January expenditure figures reflect the introduction of measures introduced as part of Budget 2025 – the increases to Social Protection weekly rates, the expansion of the school meals scheme and the increased health sector investment are among the areas where Budget 2025 funding is supporting improvements in living standards and public services.
"At end-January 2025, capital expenditure was 51.5% higher than the same period last year. This continues the ramp up of the National Development Plan as well as the government’s commitment to investing in long-term public infrastructure projects that will address infrastructural deficits, enhance the competitiveness of our economy improve the quality of life for those living and working in Ireland.”
Notes
^ Annual growth in VAT receipts is slightly skewed by a technical factor; when this is adjusted for growth stands at 4.6 per cent.