The State’s tax revenue surged to €44.7 billion in the first half of the year, a 9% increase from the previous year, according to the latest exchequer returns. The boost was mainly driven by corporation tax, income tax, and VAT, resulting in an exchequer surplus of €3.1 billion by June.
Corporation tax collection hit €12.2 billion, up by 15.4% compared to last year, with June alone showing a 38% increase. VAT receipts reached €11 billion, and income tax totaled €16.7 billion, reflecting a 7.5% rise due to increased employment levels.
Despite exceeding revenue predictions, total government spending also rose to €47.1 billion, surpassing projections by 3.3%. The Finance Minister emphasized the need to allocate excess funds sensibly, focusing on investment in Future Ireland Fund and infrastructure.
The government aims to maintain a cautious budgetary approach, balancing expenditure demands while safeguarding household finances. Efforts are being made to contain overspending in key sectors like Health, ensuring financial stability moving forward.