Budget boost for Government as €6.3bn Exchequer surplus recorded 

The figures mean that the one-off cost of living package could be in the region of €1.3 to €1.6 billion, sources said

Figures released by the Department of Finance on Friday show an Exchequer surplus of €6.3bn was recorded to end-August.

The Government has been handed a boost in the run-up to the Budget with stronger than anticipated tax receipts.

Figures released by the Department of Finance on Friday show an Exchequer surplus of €6.3bn was recorded to end-August. This compares to a deficit of €6.7bn recorded to the end of August 2021, an improvement of €13bn.

The surplus is largely driven by tax receipts and the winding down of pandemic supports.

On a 12-month rolling basis, the Exchequer surplus stands at €5.6bn and while it is expected that any surplus will be smaller by the end of the year, the figures mean that the one-off cost of living package could be in the region of €1.3bn to €1.6bn, sources said.

In total, gross revenue to the end of August stood at €66.1bn, an increase of €7.3bn or 12.3% compared to last year with tax revenues at €49.8bn, which was €10.4bn or 26.3% ahead of the same period last year. 

The increase is driven by what the Department called "strong growth in income tax, VAT and in particular, corporation tax".

Total government expenditure was €59.8bn. Of this, gross voted expenditure stood at €51.5bn, which was €1.9bn below the same period in 2021. Non-voted expenditure accounted for €8.3bn, €3.8bn below the same period in 2021.