From Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
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Tax receipts were €47.8 billion to end-July, up €4.3 billion or 10 per cent on an annual basis, driven by strong income tax, VAT, and corporation tax receipts.
At €18.2 billion to end-July, income tax receipts remain robust, up just under 9 per cent on an annual basis, reflecting the continued strength in the labour market. On a monthly basis, receipts of €2.7 billion were up by 8.7 per cent.
VAT receipts in July were €2.9 billion, up by €0.1 billion or just under 5 per cent on the same month last year. On a cumulative basis VAT remains strongly ahead of the same period in 2022, up by €1.4 billion or 11½ per cent.
Corporation tax to end-July was €10.9 billion, up on last year by €1.9 billion. July is not a key month for corporation tax, with receipts of €0.3 billion collected.
Total gross voted expenditure to end-July amounted to €49.2 billion, €3.9 billion or 8.6 per cent above the same period in 2022 and €0.4 billion or 0.9 per cent above profile.
An Exchequer surplus of €0.7 billion was recorded to end-July. This compares to a surplus of €5 billion in the same period last year. The year-on-year deterioration is driven by the transfer earlier this year of €4 billion in windfall tax receipts to the National Reserve Fund.
Commenting on the figures, the Minister for Finance Michael McGrath said:
“Today’s Exchequer returns continue the trends established in the first half of the year, with robust income tax returns and steady growth in VAT receipts reflecting the strength of an economy that is now operating at essentially full employment.
"Overall, tax revenue now stands more than €4 billion ahead of last year. However, a considerable portion of this increase is driven by potentially unsustainable corporation tax receipts.
"This government is taking steps to address the exposure of our public finances to this revenue stream: €6 billion in windfall receipts have been transferred to the National Reserve Fund and work is underway on proposals for a longer-term investment fund. In addition, in the Summer Economic Statement last month, Government announced that €2¼ billion in windfall receipts will be made available to fund expanded capital investment over the period 2024-2026.
"The fiscal strategy for Budget 2024 set out in the Summer Economic Statement strikes the appropriate balance between continuing to invest in our public services and infrastructure and ensuring the long-term sustainability of our public finances.”
The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe, said:
“Today’s publication shows expenditure of €49.2 billion in the first seven months of 2023; almost €4 billion higher than the same period last year. This spending has invested in providing public services, enhanced our infrastructure and supported our population as it grows.
"This builds on continued investment to provide better public services and deliver for the long-term needs of our future population. These are the core ambitions of Government and will be a key focus of the upcoming Budget negotiations. I have recently set out the context for these negotiations in the Mid-Year Expenditure Report. The parameters outlined reflect the government’s commitment to delivering high-quality public services and infrastructure while ensuring the economy and public finances remain on a sustainable pathway. I will be engaging with my colleagues over the coming weeks and months to ensure we can effectively deliver on these key priorities.”