DAVY VIEW

Yesterday’s (January 4th) exchequer returns confirmed that the Irish government ran a surplus of €5bn (1% of GDP) in 2022, one of the few countries to do so. The out-turn was helped by the recovery in tax receipts following the COVID-19 pandemic but was also largely dependent on the multinational sector and buoyant corporate tax revenues. Aggregate spending rose only 1.5% in 2022. However, a 19% fall in Department of Social Protection spending on COVID-19 income supports helped to offset rapid growth in expenditure on health, education and housing.