Ibec, the group that represents Irish business, welcomed the Exchequer returns which show that the Government ran a surplus last year.
Commenting on Exchequer receipts Ibec Economist Alison Wrynn said: “The figures released today show that the Government ran a surplus last year for the first time since the crisis. Corporation tax receipts, which exceeded €10 billion played a key role in achieving this. These receipts have exceeded initial forecasts every year since 2015 and are now more than double what they were in 2014. However, had it not been for this unexpected surge in corporate tax, Government would still be running a deficit and would be spending €5.3 billion more than we are bringing in.
“To date, much of the volatility in corporation tax receipts was positive, but were it to move in the other direction, government finances would be left very exposed as most of this unexpected revenue was used to finance unplanned supplementary estimates. Any future surge in resources should be ring-fenced for one off capital projects as opposed to day to day spending.”