DUBLIN, Jan 4 (Reuters) - Ireland's headline budget surplus slipped slightly in 2023, but the finance minister said a steadily growing tax take demonstrated the underlying strength of the economy.
Ireland's general government surplus for 2023 slipped to 2.75% of modified gross national income (GNI*) from 3.1% last year, the finance ministry said. The surplus was slightly behind an October forecast of 3% and is the equivalent of just under 8 billion euros ($8.8 billion).
"This is a very strong out-turn for the year as a whole and more than ever, it is a clear reflection of the fundamental strength of the Irish economy, and in particular our labour market," Finance Minister Michael McGrath told journalists.
The government uses the bespoke GNI* measure to strip out some of the ways Ireland's huge multinational sector can exaggerate the size of the economy.
Corporate tax revenues, driven by the multinational sector, were a record 23.8 billion euros for the year, up 5.3% on 2022, the ministry said.
McGrath said he expected corporate tax revenue to perform steadily in the year ahead, but at a "much more modest growth rate than we have enjoyed in recent years."
Total tax receipts were up 6% in 2023 compared to the previous year, with income tax up 7.1%. Core expenditure was 6.7% higher, the ministry said. ($1 = 0.9124 euros) (Writing by Conor Humphries Editing by Mark Potter and Tomasz Janowski)
