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Government's spending on wages up 9.3% so far this year

A sign 'Department of Finance' at the entrance to Department of Finance/Government Buildings in Dublin. On Tuesday, 13 April 2021, in Dublin, Ireland. (Photo by Artur Widak/NurPhoto)
Overall expenditure is forecast to rise by 7.2% this year, which is much faster than most other EU countries

Spending on wages by the Government is up 9.3% so far this year, which more than the 6.3% increase forecast in the Budget.

Latest Exchequer returns from the Department of Finance show overall expenditure by the Department of Health is up 10.6%, while spending by the Department of Education has risen 9.3%.

Expenditure by the Department of Social Protection is up 10.6%, partly driven by extra fuel allowance payments made in April, as the Government extended period during which the support is paid to help social welfare recipients with rising fuel bills.

Due to timing issues there was also an additional pension payment day in April.

This year expenditure is forecast to rise by 7.2%, which is much faster than most other EU countries.

The Irish Fiscal Advisory Council has criticised the Government for excessively relying on volatile corporation tax receipts to prop up spending.

The Exchequer returns show the growing economy has resulted in a 4.2% increase in taxes collected by the State so far this year.

Between January and April €27.9 billion was received in tax payments, the Exchequer returns for April show - €1.1 billion more than in the same period of 2025.

Income tax rose by 5.7% to €12.3 billion in the year to the end of April, a sign that the jobs market remains strong.

Value Added Tax (VAT) was up 4.5% so far this year as consumer spending was healthy.

Overall the figures show the State received more in tax so far this year than last year, when payments following the Apple tax case made last year are excluded.

There was a €4.2 billion decline in the Exchequer balance in the first four months of the year due to payments to the Government's two long term savings funds.

The Exchequer returns also show excise was down 1.8% this year, while corporation tax was up 8.6% in the period.

April is not a significant month for VAT or corporation tax payments.