Exchequer reports €4.7bn deficit as government spending of €41bn outpaces revenue

Total Government revenue at the end of April amounted to €36.5bn, down by more than 5% on an annual basis

Tanaiste and Finance Minister Simon Harris speaking to the media at the Department of Finance in Dublin. 

The Irish exchequer reported a deficit at the end of April of €4.7bn, fuelled by growing expenditure which outpaced government revenue. 

New figures released by the Department of Finance show that when revenues arising from the Court of Justice of the European Union (CJEU) ruling of 2024 are excluded, a decline of €4.2bn was recorded in the underlying Exchequer balance.

The department said this was largely due to the timing of transfers this year from the Exchequer to the Government's Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF).

Total revenue at the end of April amounted to €36.5bn, which was down by more than 5% when compared to the same period last year. 

Meanwhile, total expenditure in the same month amounted to €41.3bn. Of this, gross voted expenditure stood at €36bn, which was almost 9% ahead of the same period last year. 

Non-voted expenditure accounted for €5.2bn which was €2.6bn higher on 2025. The department said this was due to the €3.3bn in transfers to the FIF and ICNF this year, offset to an extent by reduced debt servicing costs.

Direct Taxes

Income tax receipts of €3.7bn were recorded in April, which was almost 5% ahead of April 2025. On a cumulative basis, income tax receipts of €12.4bn were almost 6% ahead of last year.

Meanwhile, corporation tax receipts of €500m were collected in the month, which was up on the same month last year by €400m. On a cumulative basis, receipts of €3.5bn were up slightly by 8.6%.

Indirect Taxes 

April is a non-VAT due month and accordingly modest receipts in the month of €200m were collected, the department said. This was down on the same month last year by €48m Cumulatively, the figures show VAT receipts of €8.3bn are ahead of last year by 4.5%.

Excise duty receipts of €600m were collected in April, down by 3.6% on the same month last year. On a cumulative basis, excise receipts of €2.1bn are down on last year by just under 2%.

Capital Taxes 

Stamp Duty receipts of €603m were collected at the end of April, down slightly on the same period last year. Capital gains tax receipts at the same time totalled €343m, which was down by €69m compared to last year. Meanwhile, capital acquisitions tax amounted to €106m at the end of last month, down by €86m 2025.

Other Taxes

Motor tax receipts of €337m at the end of April were down marginally by €2m compared to 2025, while custom receipts remained largely flat year-on-year at €194m.

Expenditure

Total gross voted expenditure at the end of last month amounted to €36bn, which was almost 9% ahead of last year.

The department noted that gross voted current expenditure of €32.3bn to end of April was 9.3% ahead of last year, while gross voted capital expenditure of €3.5bn was up by more than 5% compared to last year. 

“Today’s Exchequer returns are encouraging, highlighting Ireland’s economic resilience during a period of deep global uncertainty," said Tánaiste and Finance Minister Simon Harris.

“These strong revenues provide us with the firepower necessary to support people throughout the coming months.”

However, Mr Harris added that solid budgetary management in recent years means Government "had the capacity to respond in a timely and targeted way to help households and businesses deal with the most recent energy price shock.

“At the same time, Government continues to build up our fiscal resilience as we navigate a turbulent period in the global economy.

“We continue to transfer funds from the Exchequer into the Future Ireland Fund and Infrastructure, Climate and Nature Fund – just under €20bn in tax receipts has been transferred to date.”