Government balance returns to surplus driven by increased tax revenue
Muireann Duffy
The Government balance returned to a surplus last year, after two successive years of deficits.
Figures from the Central Statistics Office (CSO) show a general government balance of €8 billion was recorded for 2022, the highest surplus noted with the series began in 1995.
The surplus was aided by an increase in government revenue, which increased by €16.6 billion to €115.5 billion.
Government expenditure also increased, with an addition €1.8 billion spent compared to 2019, bringing total expenditure last year to €107.5 billion.
The CSO also noted that gross general government debt fell to €224.8 billion, down from €236.1 billion the previous year.
Gross Domestic Product (GDP) - a measure of the size of the economy - also continued to rise, increasing from €426.3 billion in 2021 to €402.6 billion last year.
"The increase in total revenue was very much driven by increased tax revenue which was €13.3 billion larger in 2022 than in 2021," the CSO's Tom Fitzgerald said.
He added that the increased expenditure was largely due to "increased compensation of employees and intermediate consumption with reductions in the level of subsidies in the year".
