Total general government revenue stood at €36.7 billion in Quarter 2 2026, leading to a €2.8 billion surplus in the quarter, the Central Statistics Office (CSO) has announced. Total general government revenue was €1.7 billion more than Q2 2025, a 4.9% increase.
Key figures
- General government expenditure increased to €33.9 billion in Q2 2026, which was €1.1 billion higher than Q2 2025
- Gross general government debt was €205.9 billion, or 35.3% of Gross Domestic Product (GDP) at the end of Q2 2026
- Overall taxes increased by €1.3 billion (4.7%) when compared with Q2 2025, with VAT rising €0.3 billion (8.7%) and income tax increasing €0.8 billion (9.4%)
- Social contributions increased by €0.4 billion (7.2%) compared to the same quarter in 2025
- Net debt stood at €139.3 billion at the end of the quarter, with the net debt to GDP ratio at 23.9%
- Social benefits rose by €0.7 billion (7%) while wages and salaries increased by €0.5 billion (5.8%)
Revenue and expenditure breakdown
Commenting on the release, Anousheh Alamir, Statistician in the Government Accounts Compilation & Outputs Division, said the increase in total government revenue was driven primarily by an increase in taxes of €1.3 billion and social contributions of €0.4 billion. Taxes account for over 75% of all revenue.
On the expenditure side, the €1.1 billion (3.3%) increase compared to Q2 2025 was mainly due to a rise of €0.7 billion (7%) in social benefits and €0.5 billion (5.8%) in wages and salaries (compensation of employees). Current transfers saw an increase of €0.2 billion (21.1%). Capital investment (gross fixed capital formation) increased by €0.1 billion (3.3%) while capital transfers dropped by €0.3 billion (24.2%).
Debt position improves
General government debt decreased by €9.6 billion in the quarter. As a percentage of GDP, the debt ratio was 35.3%, a decrease of 1.8 percentage points compared to Q1 2026. The decrease in the ratio is largely driven by a decrease in the level of debt securities.
Net debt, which takes into account government holdings of EDP assets, fell by €0.9 billion to €139.3 billion. While debt liabilities decreased by €9.6 billion, government holdings of EDP assets fell by €8.7 billion. On the asset side, holdings of currency and deposits decreased by €4.5 billion while debt securities fell by €4.2 billion.
Implications for the Irish economy
The continued surplus position may provide the government with additional fiscal capacity for future economic policy decisions. The increase in tax receipts, particularly from VAT and income tax, suggests ongoing economic activity, though businesses should note that higher social contributions and wages expenditure reflect upward pressure on employment costs.
The reduction in gross and net debt as a percentage of GDP may indicate an improving debt sustainability position, which could influence borrowing costs and fiscal planning. However, the quarterly nature of these figures means seasonal factors can affect comparisons, and businesses should consider longer-term trends when assessing the fiscal environment.
Source: Central Statistics Office, Government Finance Statistics Quarter 2 2026
