Steady growth in tax receipts at the start of the year; expenditure numbers reflect increased investment – Ministers Donohoe & McGrath

6th February, 2024

  • Tax receipts in January were €7.8 billion, up €0.4 billion (or just under 5 per cent) on January last year.
  • Income tax receipts in January amounted to €2.9 billion, up by 2.9 per cent on last year.
  • VAT receipts of €3.8 billion were up by 4.0 per cent year-on-year. 
  • January is generally the strongest VAT-due month of the year as it reflects the Christmas trading period.
  • Excise duty receipts of €515 million were up strongly (15½ per cent) on January last year.
  • Total gross voted expenditure to end-January amounted to €7.5 billion, €1.1 billion (16.6 per cent) ahead of the same period last year;
  • An Exchequer surplus of €2.3 billion was recorded in January.  This was down by €0.6 billion on January 2023, with increased public expenditure offsetting growth in tax revenue.

 

A headline Exchequer surplus of €2.3 billion was recorded in January, down by €0.6 billion on January 2023, with increased public expenditure offsetting growth in total tax receipts.

 

Tax receipts amounted to €7.8 billion in January, up by €0.4 billion (nearly 5 per cent) on the same months last year.

 

In terms of the individual taxes, income tax receipts of €2.9 billion were up by just under 3 per cent on January last year.  VAT receipts of €3.8 billion were €0.1 billion (4 per cent) ahead of last year.

 

Excise duty receipts amounted to €0.5 billion in January, €69 million (15½ per cent) ahead of last year. 

 

January is not a key month for corporation tax, with modest receipts of €57 million collected.

 

Total gross voted expenditure to end-January amounted to €7.5 billion, up by €1.1 billion or 16.6 per cent on 2023.

 

Commenting on today’s figures, the Minister for Finance, Michael McGrath T.D. said:

 

“Today’s figures show that aggregate tax receipts continued to display steady growth at the start of the year, with tax revenues increasing by almost 5% compared to January of last year. This is a solid start to the year, and is a clear and welcome demonstration of the continuing resilience of our economy, notwithstanding the undoubted headwinds in the global economy.  These figures come on the heels of data published by the CSO last week, which show a welcome moderation in the rate of inflation and that unemployment remains low at just 4.5 per cent.

 

It is essential that we remain vigilant to the risks to our public finances: the headline tax revenue figures for 2024 will, as has been the case in recent years, be heavily reliant on volatile corporation tax revenues, which showed considerable volatility last year. The first significant month for corporation tax revenue is expected to be March. I and my officials will be closely monitoring trends in tax receipts as they develop over the coming months.

 

A priority for me in the months ahead is to establish the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.  These funds will be essential to protecting the sustainability of the Exchequer over the years ahead and work is continuing on the legislation that will underpin them.”

 

 

The Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D. said:

 

“Today’s figures reflect the substantial investment as part of Budget 2024.

 

January saw a significant increase in capital expenditure in comparison to this time last year. This reflects the continued ramp up of the National Development Plan including increased investment in retrofit and the National Broadband Plan rollout, our schools and our ambitious housing programme.

 

Spending on public services and supports has also increased reflecting the range of measures announced in Budget 2024 including the €12 increase in social welfare weekly payments.

 

This month’s expenditure spend also reflects Government’s continued responsive approach to cost of living challenges including the payment of the January Bonus to 1.3 million Social Protection recipients as part of the Budget 2024 Cost of Living package.

 

Over the coming weeks households will continue to feel the impact of the Cost of Living supports with further electricity credits.”

 

 

ENDS

 

Fiscal Monitor January 2024

January 2024 Analytical Statement