The latest returns have provided an early glimpse of the impact that the global headwinds of the last 12 months have had on the Exchequer. It has always been our view that June will be the first key milestone in the 2026 fiscal calendar and May’s figures have provided an early indication that Ireland’s fiscal health is remaining robust in the face of ongoing external challenges.
Although this comes off the back of preliminary payments from two major firms, the signals are still healthy given the increase on last year. VAT receipts also increased 7.1% to just over €12bn, reflecting steady consumer activity in the face of ongoing cost-of-living pressures being experienced right across the economy. It remains too early to see what impact the recent uptick in unemployment levels will have for the Exchequer as income tax receipts remained robust at €15.6bn, a 7.5% increase on last year.
Attention will soon start turning to Budget 2027 and what measures will be implemented to ease the burdens facing taxpayers. While the Government has adopted a fiscally conservative approach to date, the recent measures aimed at reducing fuel prices will leave slightly less room to manoeuvre as we look forward to 2027. These figures will be a relief for many, but the situation remains fluid as we finally get a picture of how external factors are impacting Exchequer health.
