New figures from the Department of Finance show an Exchequer surplus of €12.8bn was recorded last year.

However, excluding one-off corporate tax revenues of nearly €11bn linked to the Court of Justice of the European Union (CJEU) ruling on September 10th, the underlying surplus was €1.8bn.

On the revenue front, total tax receipts for the year reached €108bn, or €97.1bn when CJEU-related revenues are excluded.

Direct Taxes

Income tax receipts totaled €35.1bn, up €2.2bn (6.6%) compared to the previous year, reflecting robust employment and earnings growth.

Excluding CJEU-related contributions, corporation tax revenues amounted to €28.1bn, a €4.3bn (17.9%) increase from 2023.

Indirect Taxes

VAT receipts rose to €21.8bn, an increase of €1.5bn (7.3%) over 2023, consistent with strong consumer spending.

Excise receipts grew to €6.3bn, up €0.7bn (11.8%), primarily due to the unwinding of temporary policy measures during the year.

Expenditure

Total gross voted expenditure reached €103.7bn, an increase of €9bn (9.5%) compared to 2023.

Finance Minister Jack Chambers, T.D., noted: “The end-year figures are significantly influenced by the one-off revenues from the CJEU ruling.

"Beneath these figures, we see steady growth in income tax and VAT receipts, underscoring the resilience of our economy.

“However, clear risks lie ahead. To navigate these, we must focus on competitiveness and fundamental priorities like energy, water, transport, and housing.

"The Government is committed to using the CJEU windfall to invest in critical infrastructure in these areas.”

Public Expenditure Minister Paschal Donohoe, T.D., added: “The 2024 figures reflect the Government’s dual commitment to supporting households and businesses while maintaining fiscal responsibility.

"Spending increases are aligned with the measures introduced in Budget 2024 and additional supports provided during the year.

“Key initiatives, such as the Christmas bonus, cost-of-living lump sum payments, and electricity credits, have been vital in easing inflationary pressures for households.

“Substantial progress has also been made in housing delivery. Capital spending on Housing, Local Government, and Heritage surged by over 40% compared to 2023, alongside significant investments in areas like school construction as overall capital spending ramps up.”