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Corporation tax to boost Exchequer figures for 2019

Exchequer figures to be released later today are expected to show a surplus of €1.5bn for last year.

The surplus is mainly due to higher than forecast levels of corporation tax on company profits.

The forecasts for corporation tax were revised upwards three times in 2019.

The final figure is expected to be €1.4bn ahead of expectations.

It is the main factor behind a surplus in the public finances expected to be 0.4% of GDP or €1.5bn for 2019 as a whole.

This will bolster the Exchequer going into this year and will help reduce, over time, the overall level of public borrowing.

Last month, Minister for Finance Paschal Donohoe announced his intention to continue to run budget surpluses over the next several years.

The budget watchdog, the Irish Fiscal Advisory Council, has been critical in the past that bumper corporation tax receipts were used to fund current spending and not put aside as surpluses.

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