Income taxes play starring role to bolster finances in March, exchequer returns to show

Confidence is building that the Government may not have to borrow further billions — but it also depends on the success of the vaccine rollout and avoiding further waves of Covid

Paschal Donohoe, the finance minister, will be looking for the return of construction to further boost income tax receipts later this year.  Picture: Moya Nolan

Income tax revenues have delivered a further surprising prop to Government finances reeling from the tougher-for-longer level 5 lockdown, the exchequer returns released on Tuesday will show.

The tax-and-spend figures for March will show the receipts the Government collects from income taxes are running ahead of all expectations going into the pandemic over a year ago, as the billions spent on supporting household incomes and expanding public sector jobs during the pandemic has paid off.