Exchequer reports €1.8bn deficit in February as expenditure rises
Tanaiste and Finance Minister Simon Harris. Picture date: Wednesday January 21, 2026.
Transfers to the Government's wealth funds and low corporate tax receipts pushed the exchequer into a deficit of €1.8bn in February as tax revenues remained largely flat compared to the same period last year, new figures from the Department of Finance show.
According to the latest exchequer returns, tax revenue for the month stood at €13.6bn, reflecting a more than 10% fall compared to last year.
However, when once-off receipts arising from the Apple tax case are excluded from 2025, total tax receipts were up marginally on last year, rising by just over 1%.
Total exchequer revenue at the end of February stood at €18.6bn, which was down by more than 11% when compared to last year. Tax revenues of €5.2bn were collected in February, which was up by just under 2% on an annual basis.
Income tax receipts of €2.9bn were recorded in February, which was over 10% ahead of the same month last year. On a cumulative basis, income tax receipts of €6bn were more than 5% ahead of the same period in 2025.
February is not generally a significant month for corporation tax, with receipts of just €800m collected. However, it remained 20% below the amount collected in February last year.
On a cumulative basis, receipts of €900m were down by almost 22%, the department found.
February is also a non-VAT-due month, with relatively modest receipts of just €500m collected, which was up by over 8% on February 2025.
Cumulatively, the department said VAT receipts of €4.7bn are ahead of last year by just under 4%.
Excise duty receipts of €500m were also collected in February, up slightly by €13m on the same month last year.
On a cumulative basis, excise receipts of €1bn are down slightly on last year by €24m.
Stamp duty receipts of €308m were collected at the end of last month, which was broadly flat on 2025. Meanwhile, capital gains tax receipts stood at €270m, down over 21% compared to last year.
Capital acquisitions tax collected at the end of the month amounted to €45m, which was down by €8m annually.
Motor tax receipts of €164m were collected by the exchequer at the end of February, which was flat on last year.
Customs receipts of €93m were also collected, which was up by €5m annually.
Expenditure for February was over €20bn, department figures show. Of this, gross voted expenditure at the end of February amounted to €17.5bn, which was just over 5% ahead of last year, while non-voted expenditure accounted for €2.8bn.
Non-voted expenditure rose by €1.7bn compared to 2025, which the department said was due to transfers to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.
Speaking on the latest exchequer returns, minister for finance Simon Harris said: “February is typically a quiet month for tax revenues, but the growth in income tax is a positive reflection of the strength of our economy.
"The March returns, which will include the first significant month of the year for corporation tax payments, will provide a better insight into the performance of the public finances.
“This is a time of unprecedented global uncertainty, and it is more important than ever that we continue to reinforce our economic resilience by running surpluses, making transfers into the two funds, and keeping public spending under control as set out in our Medium Term Fiscal & Structural Plan”.
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