By Cillian Sherlock, PA
There is a projected surplus of about €25 billion this year, according to figures from the Department of Finance.
The figure was announced by Minister for Finance Jack Chambers ahead of the publication of the White Paper which deals with estimates of receipts and expenditure for the year.
The figures do not include measures to be announced in the Budget on Tuesday.
Mr Chambers revealed that approximately €8 billion of the €14.1 billion Apple taxes will be received by the Exchequer in 2024, with the remainder due in 2025.
He said he is working with Public Expenditure Minister Paschal Donohoe on a proposal for party leaders relating to a “wider strategic direction” for the Apple tax, rather than specific spending decisions.
The Apple receipts mean that, on a pre-budget basis, the department is projecting a general government surplus of about €25 billion for 2024, and €12 billion for 2025.
This is the equivalent of approximately 8 per cent of GNI* for 2024 and 3.75 per cent for 2025.
Modified gross national income (GNI*) attempts to give a better view of the Irish domestic economy by removing some multinational activity, compared with the standard metric of gross domestic product (GDP), which is the value of goods and services produced in a country.
Speaking at the Department of Finance on Friday, Mr Donohoe said the economy “continues to perform very strongly”.
The Summer Economic Statement (SES), published in July, set out the parameters for a budget worth €8.3 billion, with spending measures of €6.9 billion and a tax package worth €1.4 billion.
Mr Donohoe said the White Paper does not change these parameters and budgetary negotiations continue on the SES basis.
Asked about corporation tax levels, Mr Chambers said receipts are 28 per cent ahead of last year which is “far in excess” of projections.
Overall corporation tax receipts are expected to be €30 billion this year.
“They’re performing really strongly and that’s why its important with additional windfalls around corporation tax that we’re very careful in our management of that,” he said.
Mr Chambers told reporters he did not expect the budget’s cost-of-living package to be of the same scale as last year, given that inflation is just over 1 per cent.
However, he acknowledged there was still an impact of high prices from underlying inflation.
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