Ifac says new government must budget better and save more of Ireland's tax bonanza

Incoming government must anchor its spending and save more of its corporate tax receipts to mitigate existing risks and a potential downturn, says the Irish Fiscal Advisory Council

Ifac said the next government should treat soaring corporation tax receipts the same way Norway treats its oil — recognise it as a high-risk finite resource, and save more of the proceeds. Picture: Carina Johansen/NTB Scanpix/AFP/ Getty

While the next government can expect steady growth in tax revenue over the coming years, it will need to anchor its spending and save more corporate tax receipts in order to mitigate against established risks and a potential economic downturn, the Irish Fiscal Advisory Council (Ifac) has warned.

This comes as the latest exchequer returns show corporation tax receipts during November surged over 116% as the government received a tranche of tax owed as a result of the Apple court case which concluded in September.