Ireland’s tax receipts for May are a reminder of why we need to discuss the upcoming Government's Budget 2026 now. It may seem like a while away, but with so much global uncertainty and change, this Budget may be one of the most important ones we've ever experienced.  

What we can and should focus on in Ireland is how we use these so-called windfall taxes to insulate against stormy conditions and to power bold decisions. In that regard, while it is slightly concerning to see the rate of growth in current expenditure outstripping the growth rate of underlying tax receipts, the significant increase in capital expenditure of almost 30% is to be welcomed. We have consistently stated that these receipts need to be invested strategically in Ireland’s infrastructure and to grow Domestic Direct Investment. 

Tax receipts in May also give us an insight into consumer spending, and the increase in VAT is good news. This reflects continued strong levels of employment and the fact that consumers are continuing to spend. We can’t take this for granted, and we need to invest further for our growing population.   

Tax returns are also one of the indicators we can use to assess how businesses have been impacted by tariffs. While it’s still early days, and May’s receipts are not as relevant in this regard, next month’s corporation tax receipts will be important, as it will indicate how strong the corporate tax receipts will be for 2025 and we may begin to see some of the impact of tariffs.  

Last year's Budget wisely invested in two long-term funds, and we need to see that level of ambition again this year. Our strong tax receipts can't be used for once-off measures or for business as usual. 

Now is the time to invest, now is the time to make bold decisions.