Exchequer swings to €1.8bn deficit as Apple tax boost fades

Income tax and corporation tax receipts rise

Overall, tax revenue to the end of August stood at €66.3bn, €2.2bn ahead of last year.  Pic: Stephen Collins/Collins Photos

The Exchequer recorded a €1.8bn deficit in the months to the end of August as the one-off boost from the Apple tax case fades.

According to new data, the surplus of €3.2bn recorded over the same period last year deteriorated by €5bn. Publishing the Exchequer Returns, the Department of Finance said the €5bn figure can be explained by the revenues arising from the Court of Justice of the European Union (CJEU) ruling of 2024. 

When these revenues are excluded from last year, a decline of €1.7bn was recorded in the underlying Exchequer balance, largely due to higher transfers to the Future Ireland Fund (FIF) and Infrastructure, Climate and Nature Fund (ICNF).

Overall, tax revenue to the end of August stood at €66.3bn, €2.2bn ahead of last year. Gross revenue stood at €81.8bn, an increase of €1.1bn compared to last year.

Tánaiste and Minister for Finance, Simon Harris said the numbers reflect the fundamental strength of the economy and a labour market that has been running at full capacity.

“As we continue to work on Budget 2027, the focus is on getting the balance right. This Government will deliver a Budget that makes work pay, supports business and continues to invest in our public services and infrastructure. At the same time, we will ensure that Budget 2027 keeps our public finances on a sustainable path by continuing to build fiscal buffers and investing in the Future Ireland Fund."

Total expenditure was €83.6bn. Of this, gross voted expenditure stood at €73.7bn, which was €5.1bn (7.5%) ahead of last year. Non-voted expenditure accounted for €9.8bn, up by €1.0bn on last year.

Income tax receipts of €3.1bn were recorded in August, 8.7% ahead of August 2025. On a cumulative basis, income tax receipts of €25.0bn were €1.8bn (7.7%) ahead of last year.

Corporation tax receipts of €2.8bn were collected in the month. This was up on the same month last year by €0.7bn. On a cumulative basis, receipts of €17.8bn are up by €1.4bn (8.3%).

Excise duty receipts of €0.4bn were collected in August, down by €0.1bn (17.4%) on the same month last year. On a cumulative basis, excise receipts of €3.9bn are down on last year by €0.3bn (7.1%) due to the temporary reductions on excise on fuel introduced by the Government.

Debt servicing costs fell by €500m to €2bn, providing some offset to the wider deterioration in the public finances.

The Minister for Public Expenditure Jack Chambers said the figures demonstrate the investment being made in delivering public services and the infrastructure. "Departments will continue to invest through the National Development Plan and ensure that the substantial resources provided by Government translate into better services, stronger infrastructure and more positive outcomes for people across the country," he said.

Commenting on the figures, Orla Gavin, Head of Tax, KPMG Ireland said the strong receipts create room for action as Government finalises the Budget 2027.

"The immediate pressure is the renewed squeeze on household finances, with Irish inflation estimated at 3.4% in August and energy prices 11.8% higher than a year earlier," she said.

"With interest rates expected to remain higher for longer, and a further ECB increase anticipated, mortgage holders, first-time buyers and businesses face continued pressure on borrowing costs."