Donohoe signals caution as Ireland posts €4.5bn surplus ahead of budget talks
Finance minister Paschal Donohoe is due to publish the summer economic statement this month and unveil the date of the budget for later this year. Picture: Conor Ó Mearáin/Collins
The exchequer has recorded a surplus of €4.5bn for the first six months of the year, with wrangling over the budget due to kick off in the coming weeks as finance minister Paschal Donohoe prepares to publish the summer economic statement.
Mr Donohoe is due to publish the summer economic statement this month and unveil the date on which the budget will be presented to the Oireachtas later this year.
The budget is likely to be more restrained than previous years, as global economic uncertainty means the Government will likely be taking a cautious approach.
During the first half of the year, the exchequer recorded a surplus of €4.5bn — an increase of €1.4bn compared to the same period in 2024.
However, once the proceeds from the EU Apple tax case ruling are excluded, the underlying surplus drops to €1.2bn, a fall of €1.9bn.
Gross exchequer revenue for these six months stood at €62.8bn — up by €8.1bn year on year. Of this, revenues accounted for €49.5bn — up by €4.7bn.
On the expenditure front, the Government spent €58.2bn between January and the end of June; of this, gross voted expenditure stood at €50.9bn, which was €3.8bn higher year-on-year.
In the year to the end of June, €3bn was transferred to the Future Ireland Fund and Infrastructure, Climate, and Nature Fund last month.
Mr Donohoe said last month that, in the event of an economic downturn, he would make every effort possible to protect capital expenditure, including using the money set aside in these two funds.
During June, €2.9bn was collected in income tax, bringing the total receipts so far this year to €17.4bn — up €700m year-on-year.
Corporation tax receipts of €7.4bn were collected during last month, bringing the total for the year to €14.8bn, however, this drops to €13.1bn when the Apple tax case proceeds are excluded. This is still €900m higher than last year and "slightly ahead of profile” for this year, according to the Department of Finance.
June is a non-Vat-due month, with just €200m collected. In total, Vat receipts of €11.6bn have been collected so far this year, an increase of €600m.
Excise duty receipts during June stood at €500m — up by €100m.
Other tax revenue for the year so far reached €13.3bn, with appropriations-in-aid accounting for €8.8bn, and non-tax revenue and capital resources revenue accounting for the remaining €4.5bn.
Exchequer debt service expenditure in the year to the end of June was €2.2bn, down by €300m compared to last year.
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