Ireland recorded another year of robust tax performance in 2025, with total receipts rising to €105.7 billion, an 8.9% increase on 2024, according to figures released by the Department of Finance. The growth helped deliver an underlying Exchequer surplus of €3.8 billion, underscoring what ministers described as the continued strength of the economy and the resilience of consumer spending.
Income tax receipts climbed to €36.6 billion, up 4.3%, reflecting a buoyant labour market. Corporation tax—long a volatile but significant pillar of the public finances—rose sharply to €32.9 billion, an increase of 17.2% on the previous year. VAT receipts also strengthened, reaching €22.9 billion, up 5.1%, while excise duties grew modestly to €6.5 billion.
Non‑tax revenue more than doubled to €3.5 billion, driven largely by transfers linked to a Court of Justice of the European Union ruling, primarily relating to interest payments.
On the expenditure side, gross voted spending reached €109.4 billion, up 5.5% on 2024 and slightly below profile. The government said the uplift reflected targeted investment in public services, welfare supports and infrastructure.
Tánaiste and Minister for Finance Simon Harris said the figures highlight the “fundamental strength” of the Irish economy, noting that income tax and VAT—key indicators of employment and consumption—continue to perform strongly. He added that the Government’s new Medium‑Term Fiscal and Structural Plan aims to anchor spending levels while still enabling investment in services and infrastructure.
Minister for Public Expenditure Jack Chambers said increased spending in 2025 delivered on commitments set out in Budget 2025, including higher welfare payments and expanded frontline staffing across education, health and policing. He pointed to a 21% rise in capital funding for housing, alongside major allocations for acute hospital beds and transport projects, as evidence of the Government’s focus on long‑term infrastructure delivery.
Chambers said the priority for 2026 is ensuring “every euro spent delivers real impact,” with an emphasis on high‑quality public services, growth‑enhancing investment and improved living standards.
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