Government spending on wages has increased by 9.3% so far this year, exceeding the 6.3% rise that had been projected in the Budget.
The latest Exchequer returns from the Department of Finance also show that spending by the Department of Health has climbed 10.6%, while expenditure by the Department of Education is up 9.3%, reports RTE.
Spending by the Department of Social Protection has risen by 10.6%, partly due to additional fuel allowance payments made in April after the Government extended the payment period to assist welfare recipients with higher fuel costs.
An extra pension payment day in April also contributed because of timing-related issues, reports RTE.
Overall expenditure this year is expected to increase by 7.2%, a rate significantly higher than that of most other EU countries.
The Irish Fiscal Advisory Council has criticised the Government for relying too heavily on volatile corporation tax receipts to support increased spending, reports RTE.
The Exchequer figures show that the expanding economy helped drive a 4.2% rise in tax revenue collected by the State during the first four months of the year.
Between January and April, the State collected €27.9 billion in tax revenue — €1.1 billion more than during the same period in 2025, according to the April Exchequer returns, reports RTE.
Income tax receipts increased by 5.7% to €12.3 billion by the end of April, indicating continued strength in the employment market.
Value Added Tax (VAT) receipts also rose by 4.5% this year, reflecting healthy consumer spending, reports RTE.
Overall, the figures indicate the State has received more tax revenue so far this year compared with last year, excluding payments linked to the Apple tax case in 2025.
There was a €4.2 billion drop in the Exchequer balance during the first four months of the year due to payments into the Government’s two long-term savings funds, reports RTE.
The returns also showed that excise revenue fell by 1.8% this year, while corporation tax receipts increased by 8.6% over the same period.
April is generally not considered a significant month for VAT or corporation tax payments, reports RTE.
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