From Department of Finance; Department of Public Expenditure, NDP Delivery and Reform
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Tax revenues remain strong in July; expenditure demonstrates Government's commitment to investing in public services - Ministers Chambers & Donohoe
Tax receipts of €7.6 billion were collected in July, up by €0.7 billion (10.4 per cent) on July last year, with strong growth in income tax, VAT and excise duties.
Income tax receipts continued steady growth in July, with receipts of €2.9 billion up by €0.2 billion (7.0 per cent) on the same month last year. On a cumulative basis, income tax receipts to end-July were €19.6 billion, up by €1.4 billion (7.4 per cent) on 2023, reflecting the strong labour market.
July is a VAT-due month, with receipts of €3.2 billion collected, €0.3 billion (9.7 per cent) ahead of July last year. On a cumulative basis, VAT receipts of €14.2 billion are €0.9 billion (6.9 per cent) up on the same period in 2023.
July is not a key month for corporation tax, with relatively modest receipts of €0.4 billion collected, up on July last year by €39 million. On a cumulative basis, however, corporation tax receipts of €12.5 billion are ahead of last year by €1.7 billion (15.3 per cent), reflecting a sharp increase last month.
Excise duties of €0.7 billion were collected in the month, up on the same period last year by €0.2 billion (29.9 per cent). Cumulative receipts of €3.6 billion are now up on last year by €0.5 billion (14.7 per cent), reflecting the unwinding of policy measures.
In aggregate terms, tax receipts to end-July of €52.3 billion are €4.5 billion (9.5 per cent) ahead of 2023, driven by growth across most revenue streams but primarily the ‘big four’ of income tax, corporation tax, VAT and excise duties.
Total gross voted expenditure to end-July amounted to €55.7 billion, €6.5 billion or 13.2 per cent above the same period in 2023 and €2.6 billion or 4.8 per cent above profile.
An Exchequer surplus of €3.4 billion was recorded in the first seven months of the year. This was an improvement of €2.6 billion on the same period last year but, as noted previously, the annual comparison is flattered by the transfer to the National Reserve Fund in the first half of last year.
Commenting on the figures, the Minister for Finance, Jack Chambers T.D. said:
“The July Exchequer returns largely continue the trends seen in the year to date, with robust income tax and VAT revenues providing further confirmation of the underlying strength of our economy.
With the exception of the significant increase in corporation tax we are, broadly speaking, where we expected to be at this point in the year in terms of tax revenues. I would note, however, that at this point last year we were in a similar position, with corporation tax performing very strongly, but this was followed by consecutive months of sharp declines in this revenue stream. This highlights the exceptional volatility in corporate tax receipts and means caution is advised before drawing firm conclusions from the performance in the year-to-date. As I have said previously, these receipts cannot be relied upon and should not be used to fund permanent spending.
Last month, Government published the Summer Economic Statement, which outlined the fiscal parameters for Budget 2025. This set out a balanced fiscal strategy that both provides the scope to continue investing in our public services and supporting households and maintains our public finances on a sustainable trajectory over the medium-term.”
The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D. said:
“Today’s figures represent an increase of almost €6.5 billion or 13.2% in total gross voted expenditure in comparison to the same period last year. There are large year-on-year increases being seen across a number of sectors – in particular Housing which has increased by €1.7 billion or 75.3% over last July, Health which is €1.7 billion or 13.3% higher, Social Protection at €0.9 billion or 6.3% higher than last year; and Education at €0.5 billion or 8.7% up year on year. These spending increases reflect Government’s commitment to investing in our public services and infrastructure, whilst also protecting the most vulnerable in our society.
Later this week, I will be publishing the Mid-Year Expenditure Report. This report outlines expenditure and trends for the first half of this year and also provides context and parameters for planned expenditure. I will continue to engage with my colleagues in the lead up to Budget 2025 to achieve our key objective of providing for high quality public services and better societal outcomes, in a manner consistent with a fiscally sustainable expenditure strategy. I will do this while also reiterating the pressing need to stay within profile so that we can ensure that the investments we want to make in key areas are achievable.”
ENDS