Fiscal watchdog warns Ireland’s budget relies heavily on risky corporation tax receipts

After the Budget 2027 was released, the Irish Fiscal Advisory Council warned that the government is increasingly using high-risk corporation tax receipts to fund permanent tax and spending measures, worsening the fiscal trajectory. It highlighted that spending has grown at roughly double the sustainable 5% rate, with an overspend of €2.1 billion already evident for 2026. The council warned that if this pattern continues, deficits could reach around €20 billion and debt could rise by over €35 billion by 2030, while the annual interest bill may more than double to €6.4 billion.

It also pointed out that six-sevenths of total corporation tax is being spent rather than saved, and that a small number of firms contribute nearly half of the tax base. The report urged the government to adopt clearer rules on tax cuts and spending to protect fiscal stability.