Government publishes White Paper ahead of Budget

By Cillian Sherlock, PA

Pre-Budget projections predict an end-year Exchequer surplus of €1.07 billion this year, and €1.45 billion at the end of 2026.

The figures are included in the Department of Finance White Paper for estimates on receipts and expenditure.

The figures in the document do not include any new policy measures to be announced as part of the 2026 Budget process.

The White Paper forecasts strong economic growth in 2025 and this is now set to continue into 2026

The White Paper also estimates that the Exchequer balance would be a €2.2 billion deficit this year if receipts arising out of the Apple tax ruling were excluded.

The broader measure of the general Government balance predicts a €10.3 billion surplus this year, falling to €8.8 billion next year.

Excluding windfall corporation tax receipts, there would be a deficit of €7.3 billion this year, deepening to €9.8 billion in 2026.

Finance Minister Paschal Donohoe told reporters: “The White Paper forecasts strong economic growth in 2025 and this is now set to continue into 2026.

“On this basis, total tax revenue at the end of next year is now projected to be €106 billion on a pre-Budget basis.”

He added: “We expect further increase in corporate tax this year and next, reaching €34 billion for next year.

“This means that for that year, we’ll yet again see corporate tax playing a large role in our total tax revenue.

“On Budget Day, the Government will demonstrate how it intends to use these resources to invest in our future, to address the critical challenges of infrastructure and housing, jobs, prosperity and stability at a time of global challenge.”