Exchequer surplus down year on year to 1.4bn euro

There would have been an underlying 1.9 billion euro Exchequer deficit at the end of September if Apple tax receipts were not included, according to the latest data.

An Exchequer surplus of 1.4 billion euro was recorded to the end of September, down significantly from the 5 billion euro recorded at the same point last year – and follows major transfers to long-term investment funds.

Ireland has recovered more than 13 billion euro – plus interest – in corporation tax from Apple after the European Commission successfully argued the US tech giant had been given undue tax benefits that were illegal under EU state aid rules.

When receipts arising from the Court of Justice of the European Union (CJEU) ruling on Apple taxes are excluded, an underlying Exchequer deficit of 1.9 billion was recorded – a deterioration of 6.9 billion euro on the same period last year.

The underlying deficit largely reflects the transfers to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.

The latest Exchequer returns came ahead of Tuesday’s Budget.

The data also shows that tax revenue to the end of September was 73 billion euro – 4.8 billion euro or 7.1% ahead of of the same period last year.

However, this was improved by one-off tax revenues arising from the CJEU ruling which, when excluded, left underlying tax receipts of 71.3 billion euro.

Gross revenue to the end of September was 91.2 billion euro, an increase of 8.1 billion euro compared with the same month last year.

Non-tax revenue and capital resources for the year were 4.8 billion euro, up by 2.5 billion euro on last year, primarily driven by transfers to the Exchequer arising from the CJEU ruling.

Appropriations-in-aid of 13.4 billion euro brought total other revenue to 18.2 billion euro.

September, a key month for corporation tax, saw receipts up 300 million euro on the same period in 2024.

On a cumulative basis, and excluding receipts arising from the CJEU ruling, corporation tax receipts of 18.2 billion were 400 million euro ahead of the same period last year.

Total expenditure to the end of September was 89.8 billion euro.

Of this, gross voted expenditure was 77.5 billion euro, which was 5.4 billion euro (7.6%) ahead of the same period last year.

Non-voted expenditure accounted for 12.3 billion euro, up by 6.3 billion euro on the same period in 2024.

This reflects the transfer of 6.1 billion euro to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund this year.

Finance Minister Paschal Donohoe said broadly steady tax revenue growth is a positive sign of the “underlying strength of our economy” ahead of Budget 2026, which he will announce with Public Expenditure Minister Jack Chambers.

“Budget 2026, which Minister Chambers and I will present to the Oireachtas on Tuesday, will set out a budgetary package that will help keep our economy and public finances on the right track, protecting the jobs we have, and adding to that, and meeting the needs of our people in a way that is affordable and sustainable.”

Mr Chambers said increased spending has supported the country “through a series of economic challenges and shocks”.

He said the focus for the Budget “remains on value for money and ensuring that public spending delivers real impact for our people”.

The Summer Economic Statement set out a planned package of 9.4 billion euro for Budget 2026 – including 7.9 billion in additional public spending and 1.5 billion in the tax package.

Additional spending is broken down to 5.9 billion euro for current expenditure and 2 billion euro for capital expenditure.

The Central Bank, Irish Fiscal Advisory Council (IFAC) and Economic and Social Research Institute (ESRI) have raised concerns about the risk of the planned Budget package overheating the economy.