Government spending is rising more quickly in percentage terms than tax receipts even as a record €66 billion was collected in tax over the first eight months of 2026.
Tax receipts are 6.2 per cent in advance of the same time last year when the 2025 impact of the Apple tax case is stripped out. Current spending is 8 per cent up on last year.
The €66 billion of tax collected in the first eight months of 2026 strengthens the Government’s hand as it plans for next month’s budget.
Corporation tax, an area of concern as it is concentrated around a small group of multinationals, generated €2.8 billion in August, up almost €700 million on the same month last year, the latest exchequer returns on Thursday show.
On a cumulative basis, receipts from the business tax came to €17.8 billion for the eight-month period, up 8.3 per cent year on year.
The August exchequer returns incorporate Apple’s end-of-year tax payment as the iPhone maker’s financial year ends in September.
The company is the State’s largest tax payer. It paid $17.1 billion (€14.6 billion) in tax in Ireland last year but a significant part of that total included money from the Apple tax ruling in 2024.
Minister for Finance Simon Harris said the latest exchequer figures reflected the fundamental strength of the economy and a labour market “that has been running at full capacity for the last 4½ years – the longest stretch of full employment in the history of the State”.
He promised the Government would deliver a budget “that makes work pay” while keeping the “public finances on a sustainable path”.
The exchequer numbers indicated that a total of €66.3 billion was collected across all tax channels between January and August, up €2.2 billion (3.4 per cent) on the same period last year.
However, when one-off receipts arising from the Apple tax case are excluded, total tax receipts were up on last year by €3.9 billion (6.2 per cent).
Government coffers were also buoyed by strong income tax receipts which, on a cumulative basis, generated €25 billion, €1.8 billion (7.7 per cent) in advance of last year. Strong income-tax receipts reflect a buoyant labour market with a record 2.8 million people employed in the Irish economy.
August is not a VAT-due month and receipts were “accordingly modest”, the Department of Finance said, but cumulative receipts from the sales tax came to €16.3 billion, in advance of last year by €1.1 billion.
Gross voted current spending for the period came to €64.9 billion, up €4.8 billion (8 per cent) on last year and marginally above profile.
The Government is already forecasting overruns in departmental budgets of €700 million this year. But the Irish Fiscal Advisory Council has warned these could stretch to €850 million and beyond.
Much of the overrun stems from an overspend in health and comes amid suggestions the budgetary allocation for hospitals this year remains at the 2025 level despite increased demand.
“Strong exchequer receipts create room for action as Government finalises Budget 2027, but measures must be disciplined and targeted,” Orla Gavin, head of tax at KPMG Ireland, said.
