The Minister for Finance has said there appears to be a “levelling-off” of the growth in corporation tax compared to the extraordinary levels in recent years.
Michael McGrath made his remarks in his opening address to the Joint Oireachtas Committee on Budgetary Oversight.
His colleague, the Minister for Public Expenditure, National Development Plan and Reform, Paschal Donohoe, said approximately €2.3bn of the just over €5.2bn increase in core spending in the Budget will go to maintain Existing Levels of Services (ELS).
Capital expenditure will be boosted by an additional €900m.
Around €2bn will go on new spending in the areas of childcare, health and potentially a new public service pay agreement.
A package of tax cuts worth €1.1bn is also expected.
Overall, Budget 2024 will deliver a package of €6.4bn.
This represents an increase in core spending of 6.1%.
Core spending is expected to rise to €91.2bn next year with non-core spending of €4bn.
In addition, another €250m from windfall corporation tax will be allocated to infrastructure investment.
The Government’s expenditure ceiling will rise to €95.5bn.
Article Source: Corporation tax growth levelling off – McGrath – Robert Shortt – RTE