Government revenue 'highly exposed' to profitability of small number of companies

The Central Bank Governor has urged the government not to fund permanent increases in spending with excess tax receipts

Governor Gabriel Makhlouf speaks at the media briefing for the publication of the Central Bank of Ireland’s first Financial Stability Review of 2023. Photograph: Sam Boal / RollingNews.ie

Corporation tax receipts have left State revenue subject to the profitability and decision-making of a handful of companies in the pharmaceutical and technology sector, Central Bank Governor, Gabriel Makhlouf has warned the Government.

In a pre-budget letter to the Minister of Finance, Mr Makhlouf warned that excess receipts should not be used to fund permanent increases in spending, with this year's budget expected to produce a deficit despite a record €22bn in corporation tax receipts last year.