The Government’s finances have been hit by the coronavirus crisis with tax receipts for March coming in nearly €800 million below profile while spending is up by an unexpected €1.1 billion due to increased health and social welfare expenditure. In particular, he noted that the massive surge in unemployment revealed in the latest live register numbers had not yet hit income tax receipts, the Government’s main tax channel. The latest exchequer returns show the Government collected €12.9 billion in tax in the first three months of the year. The sales tax was also 50 per cent, or €1.1 billion, below expectations on a monthly basis. This, however, is expected to worsen significantly in the coming months on foot of rocketing unemployment.

Source: The Irish Times April 02, 2020 13:00 UTC