Ireland's budget hinges on a single weight-loss drug as tax base narrows

In an analysis of the upcoming Irish budget, the author highlights a growing dependence on a narrow corporate tax base. Corporation tax makes up roughly one-third of total tax income, and three companies—Apple, Microsoft and Eli Lilly—pay almost 50% of that amount. An unnamed decision-maker observed that the tax picture has moved from three companies to a single weight-loss medication.

Expected higher corporate tax receipts this year could enlarge the budget surplus and enable additional spending credits. However, the column cautions that relying heavily on one product is risky, as any downturn could jeopardise fiscal stability. The discussion also touches on broader spending pressures, with health and welfare consuming nearly half of current-day expenditures.