Tax boost for State's finances despite Covid lockdown costs of PUP and wage subsidies

Finance Minister Paschal Donohoe said the tax revenue figures were "a sign of cautious optimism for what the year will bring", but gave little away about the outcome of the Government budget deficit ahead of its update for the EU.                   

The exchequer collected much more than once expected from income taxes and Vat, bolstering optimism over the State's finances despite the increased spending on unemployment and wage subsidy schemes due to the prolonged level 5 restrictions.

The latest exchequer returns for tax and spending showed the Government collected €13bn in tax revenues in the first three months of the year, which was slightly ahead of the first quarter in 2020 despite that period including two months before the onset of the pandemic.