Ireland's finance data for the month of March has proven that Ireland is continued to beat expectations, according to Davy.
Ireland’s public finance data for March showed a buoyant 15 per cent growth rate in tax receipts in the first three months of this year to €19.7 billion, with corporation taxes were up 71 per cent.
Income taxes rose by 8 per cent to €7.4 billion, pointing to further job creation, while value-added taxes grew by 16 per cent to €6.8 billion, suggesting that consumer spending was still robust in early 2023.
However, the big beat was corporation taxes of €3.2 billion, up 71 per cent on the first three months of 2022.
According to Davy chief economist Conall MacCoille, revenues are continuing to beat expectations and forecasts, pointing to the increase in corporation taxes so far this year.
"The clear message from yesterday’s data is that tax revenues continue to beat expectations and official forecasts. So there is now a clear upside risk to our forecast that the surplus will equal €9 billion (1.7 per cent of GDP) in 2023.
"The Department of Finance had forecast that such ‘windfall’ receipts would equal €10bn in 2023. This initiative will clearly put upward pressure on required government debt issuance, as existing bonds mature and budget surpluses are invested in the fund.
"However, the big beat was corporation taxes of €3.2bn, up 71 per cent on the first three months of 2022. Budget 2023 had assumed 8 per cent growth in corporation taxes in 2023."
