Stable tax growth in Q3, continued spending on infrastructure and public services – Ministers Donohoe & Chambers
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Ó: An Roinn Airgeadais; Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation
- Foilsithe:
- An t-eolas is déanaí: 3 Deireadh Fómhair 2025
- Today’s Exchequer returns show that tax receipts to end-September were up by €4.8 billion (7.1 per cent) on the same period last year;
- When once-off tax receipts arising from the Court of Justice of the European Union (CJEU) ruling of September 10th 2024 (€1.7 billion) are excluded, tax revenues amounted to €71.3 billion, up by €2.6 billion (4.6 per cent);
- Income tax receipts in the period of €25.8 billion are up on last year by €1 billion (4 per cent);
- VAT receipts of €18.8 billion were up by €0.9 billion (4.8 per cent);
- Corporation tax receipts excluding CJEU revenues of €18.2 billion are up by €0.4 billion (2.5 per cent);
- Total gross voted expenditure to end-September amounted to €77.5 billion, €5.4 billion (7.5 per cent) ahead of the same period last year and €0.1 billion (0.2%) ahead of behind profile;
- A headline Exchequer surplus of €1.4 billion was recorded to end-September. This compares to a surplus of €5 billion last year, a decline of €3.6 billion;
- Excluding CJEU receipts, an underlying Exchequer deficit of €1.9 billion was recorded in September;
- The underlying deficit largely reflects the transfers to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund;
Tax receipts of €73 billion were collected to end-September, up by €4.8 billion (7.1 per cent) on the same period of 2024. When once-off tax revenues arising from the CJEU ruling of September 10th 2024 of €1.7 billion are excluded, ‘underlying’ tax revenues stood at €71.3 billion, a €3.1 billion (4.6 per cent) increase on last year.
Income tax receipts of €2.5 billion were collected in September, down by €0.1 billion (2.2 per cent on last year). On a cumulative basis income tax receipts now stand at €25.8 billion, ahead of last year by €1 billion (4.0 per cent).
September is the second-last VAT-due month of the year, with receipts of €3.6 billion up on the same month last year by €0.2 billion (4.7 per cent). On a cumulative basis, VAT receipts of €18.8 billion are ahead of last year by €0.9 billion (4.8 per cent).
Corporation tax receipts of €1.8 billion were collected in September, up on the same month last year by €0.3 billion. On a cumulative basis, and excluding receipts arising from the CJEU ruling, corporation tax receipts of €18.2 billion were €0.4 billion (2.5 per cent) ahead of the same period last year.
Non-tax revenue to end-September was €2.5 billion, up by €1.6 billion on the same period last year, largely driven by transfers to the Exchequer arising from the CJEU judgement (mainly interest payments).
Total gross voted expenditure in in the period amounted to €77.5 billion, up by €5.4 billion (7.5 per cent) on last year and €0.1 billion (0.2 per cent) ahead of profile.
At a headline level, an Exchequer surplus of €1.4 billion was recorded to end-September. This compares to a surplus of €5.0 billion last year, a decline of €3.6 billion. Excluding the once-off receipts arising from the CJEU ruling, there was a deficit of €1.9 billion, a decline of €6.9 billion on last year, largely due to transfers to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.
The Minister for Finance, Paschal Donohoe T.D. said:
‘Today’s figures show that tax revenue growth in the year to date has been broadly steady, which is a positive sign of the underlying strength of our economy as we prepare to announce Budget 2026’.
“I would also highlight the transfers we have made to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund this year: the total in both funds now stands at over €16 billion, clearly demonstrating this Government’s commitment to building up our buffers for the future.
“Budget 2026, which Minister Chambers and I will present to the Oireachtas on Tuesday, will set out a budgetary package that will help keep our economy and public finances on the right track, protecting the jobs we have, and adding to that, and meeting the needs of our people in a way that is affordable and sustainable.”
The Minister for Public Expenditure, Public Service Reform and Digitalisation, Jack Chambers T.D. said:
“Today’s Exchequer figures show gross voted spending of €77.5 billion to the end of September, broadly in line with departmental profiles and just 0.2% above expectations. Compared to last year, spending is up 7.5%, reflecting delivery of Budget 2025 priorities — including increased social protection rates and targeted investment in health, education and infrastructure.
This increased spending has supported our country through a series of economic challenges and shocks.
Capital spending is up 19% year-on-year, with a 29% increase under the Housing Vote Group, underscoring our commitment to addressing infrastructure needs.
In July, I published the National Development Plan Review 2025 — the largest capital investment plan in the history of the State — with €275 billion earmarked to 2035. This will drive growth, resilience and job creation across housing, water, energy and transport.
Later today, the White Paper will be published, reflecting the €108.7 billion gross expenditure ceiling for 2025. We are also preparing for the delivery of Budget 2026 on Tuesday.
As part of our estimate negotiations, I asked Departments to assess their full allocations for 2026, not just additional funding, and to identify reforms and efficiencies. Our focus remains on value for money and ensuring that public spending delivers real impact for our people.”
ENDS