Dáil Éireann Debate, Tuesday - 26 May 2026
463. Deputy William Aird asked the Tánaiste and Minister for Finance the measures being taken to reduce the Exchequer's exposure to volatility in corporation tax receipts and to strengthen the resilience of the State's tax base over the medium to long term; and if he will make a statement on the matter. [39687/26]
Amharc ar fhreagraThe past decade has seen considerable growth in CT receipts. From just over €6.8 billion in 2015, they reached over €32.9 billion in 2025. Last year represented the fourteenth consecutive year of annual growth from the low point of €3.5 billion in 2011.
This strong performance of corporation tax in recent years has highlighted the risk of relying on volatile and unpredictable receipts to fund permanent increases in expenditure. This Government is actively working to mitigate our exposure to corporation tax volatility. By the end of this year, there will be some €24 billion invested in the Future Ireland Fund (FIF) and the Infrastructure, Climate and Nature Fund (ICNF). This means we are setting aside a portion of tax receipts now to prepare for the future and enhance our economic resilience, instead of funding day-to-day spending.
Government has also built-up substantial cash reserves over the last four years by recording consecutive surpluses whilst also lowering our debt burden, to further protect us against any sharp decline in corporation tax receipts.
Furthermore, Government recently published its medium-term budgetary plan which sets out a path for net public spending. The plan will enable sustainable increases in expenditure for public services, boost economic resilience by committing to large-scale infrastructure investment and save for the future by maintaining budgetary surpluses, pursuing a balanced and appropriate approach to overall budgetary policy and setting aside revenue in the FIF and ICNF. This is the best way to guard against a downturn in corporate tax revenues.
