Government projects €1.4bn Exchequer deficit in pre‑budget White Paper

The Government’s pre‑budget White Paper forecasts a €1.4 billion Exchequer deficit for the current fiscal year.

The document, which outlines tax and spending projections ahead of Budget 2027, estimates total tax receipts of €124.9 billion next year, including €42.1 billion from income tax.

Corporation tax is expected to rise to €39 billion, up from the €34 billion projected for the end of 2026. This follows a sharp increase in September collections, which reached €4.9 billion compared with €1.8 billion a year earlier, driven by large multinationals front‑loading payments.

Tánaiste and Finance Minister Simon Harris noted that, despite timing distortions, the trend in revenue is positive, reflecting an economy at full employment.

Income tax receipts hit €27.8 billion by the end of September, €200 million above the previous year’s level, while excise duty fell €100 million year‑on‑year to €4.4 billion for the year to date, largely due to reduced fuel duties.

VAT receipts for September rose to €4.1 billion, €600 million higher than the same month last year. Other September collections included €1.2 billion in stamp duty, €586 million in capital gains tax and €286 million in capital acquisitions tax.

Total Exchequer spending reached €93.7 billion by the end of September, and the Government recorded a €2.4 billion surplus for that period, compared with a €1.4 billion surplus a year earlier, though the figures are affected by the 2024 Apple tax ruling. Debt‑servicing costs fell to €2 billion, €600 million less than in September 2025.

Source: Irish Examiner. Photo: Nataliya Vaitkevich / Pexels.