Budget 2027: Simon Harris urges caution despite €60bn tax take in first seven months this year

When the Apple tax case money is excluded from the 2025 figures, Ireland's 2026 tax receipts are up €3.4bn (6%) on last year

Tánaiste and finance minister Simon Harris said Budget 2027 must 'strike a careful balance'. Picture: Liam McBurney/PA

Tánaiste and finance minister Simon Harris has warned that Budget 2027 will have to “strike a careful balance”, despite yesterday's exchequer returns showing tax revenues rising to nearly €60bn for the first seven months of the year.

The returns published yesterday confirmed that tax revenue to the end of July stood at €59.6bn, up €1.6bn (2.8%) on 2025.

However, last year’s figures included money paid to the State following a ruling from the Court of Justice of the European Union, compelling Apple to repay €13bn in corporation tax.

When the Apple money is excluded from the 2025 figures, the tax receipts for 2026 are up €3.4bn (6%) on last year.

Excise duty receipts for July amounted to €600m. This was down by €8m on last year, as excise cuts on petrol and diesel continue.

However, the Government has said these cuts may be unwound gradually from September.

Childcare and the cost of living

When asked yesterday in Belfast whether the plans to reinstate the excise duty will go ahead given the ongoing uncertainty in the Middle East, the Taoiseach promised that “the forthcoming budget will focus on cost of living”.

“Through taxation measures, we intend to reduce the burden of income tax on workers,” Micheál Martin said.

“The cost of childcare is an area where we can help to reduce the burden of cost of living on people, as well as the disability sector, and working on initiatives like the cost of disability.”

The Taoiseach said the exchequer returns showed Ireland had a “robust economy”, that provides a “certain degree of resilience, notwithstanding the very uncertain world out there that we are living in”.

However, Mr Harris said that Budget 2027, which will be announced on October 6, will have to feature balance.

“In a deeply uncertain world, it is more important than ever that we maintain a sensible and sustainable approach to fiscal policy.

“Budget 2027 will strike a careful balance: we will deliver a package that will help workers keep more of their earnings, while continuing to invest in our public services and critical infrastructure,” he said.

Taoiseach Micheál Martin sitting in on a session at Fleadh Cheoil na hÉireann in Belfast. Asked about Budget 2027, Mr Martin said: 'The cost of childcare is an area where we can help to reduce the burden of cost of living on people'. Picture: Mark Marlow/PA

Mr Harris also said that the Government must continue to save money into its long-term savings accounts and “run surpluses”.

The exchequer returns confirmed a deficit of €600m was recorded to the end of July. This compares to a €4.1bn surplus this time last year. However, this was largely inflated by the Apple judgement money

There have also been “higher transfers” to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund (ICNF), which the Department of Finance argued “largely” explains the deficit.

The summer economic statement, published last month, commits to €8.5bn in new measures in Budget 2027. This included a €1.5bn tax package.

• Louise Burne, Political Correspondent

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