THERE is a projected surplus of about €25 billion this year, according to figures from the Department of Finance.
The figure was announced by Finance Minister Jack Chambers ahead of the publication of the White Paper which deals with estimates of receipts and expenditure for the year.
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The figures do not include measures to be announced in the Budget on Tuesday.
Mr Chambers revealed that approximately €8 billion of the €14.1 billion Apple taxes will be received by the Exchequer in 2024, with the remainder due in 2025.
He said he is working with Public Expenditure Minister Paschal Donohoe on a proposal for party leaders relating to a “wider strategic direction” for the Apple tax, rather than specific spending decisions.
He said the parameters for using the money will be set out in the Budget.
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The Apple receipts mean that, on a pre-Budget basis, the department is projecting a general government surplus of about €25 billion for 2024, and €12 billion for 2025.
This is the equivalent of approximately 8 per cent of gross national income (GNI) for 2024 and 3.75 per cent for 2025.
Modified GNI attempts to give a better view of the Irish domestic economy by removing some multinational activity, compared with the standard metric of gross domestic product (GDP), which is the value of goods and services produced in a country.
Speaking at the Department of Finance today, Minister Donohoe said the economy “continues to perform very strongly”.
The Summer Economic Statement (SES), published in July, set out the parameters for a Budget worth €8.3 billion, with spending measures of €6.9 billion and a tax package worth €1.4 billion.
Mr Donohoe said the White Paper does not change these parameters and budgetary negotiations continue on the SES basis.
Asked about corporation tax levels, Mr Chambers said receipts are 28 per cent ahead of last year which is “far in excess” of projections.
Overall corporation tax receipts are expected to be €30 billion this year.
He said: “They’re performing really strongly and that’s why its important with additional windfalls around corporation tax that we’re very careful in our management of that.”
SEVEN MAJOR MONEY CHANGES IN SEPTEMBER
THERE are seven upcoming money changes that should ease the pain on people’s pockets this month, including a €462 payment set to be paid in just weeks.
Electricity & Gas Price Cut
Electric Ireland has confirmed that it will cut its electricity and gas prices from November 1.
The country’s biggest electricity provider confirmed that both its standard unit rate of electricity and standard gas rate will be reduced by three per cent for over 1.2 million customers.
This will save households around €45 a year on their electricity and €40 a year on their gas on average.
Clothing and Footwear Allowance
The Back to School Clothing and Footwear Allowance is a payment to help families buy clothing and shoes for their children returning to school.
Children ages four to 11 are eligible for a payment rate of €160 while a child aged 12 to 22 will see a payment of €285.
Most eligible parents will have had to allowance paid out automatically – but you can apply up until September 30 on your My Welfare account if you have not received it.
Fuel Allowance
The Fuel Allowance is a major payment aimed at covering the cost of heating your home for a 28 week period from September to April and will be paid out to thousands on September 23, 2024.
To qualify for the payment you must be over 70 or getting a qualifying social welfare payment and satisfy a means test while living alone or with one of the exceptions listed here.
It can be paid out for 28 weeks in €33 payments which you will receive with your other social welfare payments but people can opt to receive the amount in two lump sums of €462.
Student Grants
Maintenance grants for students are set to increase by €615 for all non-adjacent rates and by 10 per cent for adjacent rates.
There is also changes to the postgraduate tuition fee grant which will increase by €1,000 for students in the 2023/2024 academic year.
And students who qualify for the Free Fees Scheme, will see the Student Contribution be reduced by €1,000 in the 2023/2024 academic year. Those who have already paid will receive a refund.
From this month the income threshold to qualify for the 100 per cent Student Contribution will increase to €55,924.
Hot School Meals
In July, Social Protection Minister Heather Humphreys announced an additional 168 primary schools would receive Hot School Meals in the term starting in September 2024.
This means 345,000 primary school children are now eligible to receive hot school lunches.
Childcare Scheme
The National Childcare Scheme’s subsidy, which can be used with any childcare provider who is participating and it paid directly to them, will increase from this month.
From September 2, 2024 the minimum rate for the National Childcare Scheme subsidies increased from €1.40 to €2.14 per hour.
Free Book Scheme
An extension of the Free School Books Scheme means parents and guardians of students in Junior Cycle years in post-primary schools should not be asked to buy or rent any school books in the 2024/2025 school year under the scheme.
This applies to students enrolled in secondary schools in the Free Education Scheme and will see free schoolbooks and core classroom resources provided.
Mr Chambers told reporters he did not expect the Budget’s cost-of-living package to be of the same scale as last year, given that inflation is just over 1 per cent.
However, he acknowledged there was still an impact of high prices from underlying inflation.
Separately, Mr Chambers said he “would try and advance” a tax on vapes in the Budget.
