Robust tax growth to end-February; expenditure reflects ongoing investment in public services and infrastructure
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Ó: An Roinn Airgeadais; Department of Public Expenditure, NDP Delivery and Reform
- Foilsithe: 5 Márta 2025
- An t-eolas is déanaí: 10 Márta 2025
Robust tax growth to end-February; expenditure reflects ongoing investment in public services and infrastructure – Ministers Donohoe & Chambers
- today’s Exchequer returns show that tax receipts to end-February amounted to €15.2 billion, up €3.2 billion (26.5 per cent) on the same month last year
- when once-off tax receipts arising from the Court of Justice of the European Union (CJEU) ruling of September 10th (€1.7 billion) are excluded, tax revenues amounted to €13.5 billion, up €1.5 billion (12.1 per cent) on February 2024
- income tax receipts to end-February amounted to €5.7 billion, up by €0.3 billion (5.8 per cent)
- cumulative VAT receipts of €4.6 billion were up by €0.3 billion (7 per cent)
- corporation tax receipts of €1.1 billion (excluding CJEU tax revenues of €1.7 billion) were up €0.5 billion on 2024 due to strong receipts in February, which reflects a once-off payment
- total gross voted expenditure to end-February amounted to €16.7 billion, €1.7 billion (11.1 per cent) ahead of the same period last year and €0.2 billion (1.2%) behind profile
- a headline Exchequer surplus of €3.2 billion was recorded to end-February, this compares to a deficit of €0.1 billion in the same period last year, an improvement of €3.4 billion
- excluding CJEU receipts an underlying Exchequer surplus of €0.2 billion was recorded, an improvement of €0.3 billion on last year
Tax receipts of €15.2 billion were collected in the first two months of the year, up by €3.2 billion on February 2024. When once-off tax arising from the CJEU ruling of 10 September 2024 of €1.7 billion is excluded, ‘underlying’ tax revenues were €13.5 billion, a €1.5 billion (12.1 per cent) increase on the same period last year.
Income tax receipts in February of €2.7 billion were ahead of last year by €0.2 billion (9.4 per cent). Cumulative income tax receipts of €5.7 billion stand €0.3 billion (5.8 per cent) ahead of 2024.
February is not a VAT-due month, with relatively modest receipts of €0.5 billion collected. On a cumulative basis, VAT receipts of €4.6 billion are €0.3 billion (7 per cent) ahead of the same period last year.
February is not generally a significant month for corporation tax receipts; that said, receipts of €1 billion, were €0.5 billion higher than in February last year which reflects a once-off payment (note this is un-related to the CJEU ruling).
On a cumulative basis, corporation tax receipts of €1.1 billion in the year-to-date are €0.5 billion (89.2 per cent) ahead of the same period last year (excluding CJEU receipts).
Non-tax revenue to end-February was €1.5 billion, up by €1.4 billion on the same period last year primarily driven by transfers to the Exchequer arising from the CJEU judgement; these mainly consist of EU interest.
Total gross voted expenditure to end-February amounted to €16.7 billion, up by €1.7 billion (11.1 per cent) on February last year and €0.2 billion (1.2%) behind profile.
At a headline level, an Exchequer surplus of €3.2 billion was recorded to end-February. This compares to a deficit of €0.1 billion in the same period last year, an improvement of €3.4 billion. When receipts arising from the CJEU ruling are excluded an underlying Exchequer surplus of €0.2 billion was recorded in the period, up by €0.3 billion on last year.
Commenting on today’s figures, the Minister for Finance Paschal Donohoe said:
“February is not generally a significant month for tax revenues, but the steady performance across most tax heads to date is a further positive reflection of the strength of our economy. The March returns, which incorporate the first large corporate tax payments of the year, will provide a clearer indicator of the performance of the public finances.
“In an increasingly uncertain global environment, it is now more important than ever that we maintain our public finances on a positive trajectory. This government is committed to doing this in a balanced and sustainable way.”
The Minister for Public Expenditure, NDP Delivery and Reform, Jack Chambers said:
“My department continues to work to drive effective delivery and value for money in the investment of public funds.
“End February expenditure of €16.7 billion reflects the additional funding provided for critical areas across our society including increased Social Protection rates as well as health and education sector investment.
“Capital spending is up almost 50% over the level seen at this time last year, underscoring this government’s commitment to investing in infrastructure in areas like housing and transport. This increased spending improves people’s quality of life and enhances our national economic competitiveness.”