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Government's Spending On Wages Up By 9.3% So Far This Year

By Dalton MacNamee
07/05/2026
Est. Reading: 2 minutes

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The Government's spending on wages is up 9.3% so far this year, more than the 6.3% increase which was predicted in the Budget.

This is according to the latest returns from the Department of Finance, who say that overall expenditure from the Department of Health has increased by 10.6%, as is the spending on the Department of Social Protection, while spending on the Education Department rising to 9.3%.

Spending on Social Protection has been partly driven by extra fuel allowance payments which were made last month, with the Government extending the period during which the support is paid to help people receiving social welfare amid rising fuel bills.

Last month also saw an extra pension payment handed out due to timing issues.

This year is expected to see expenditure rise by 7.2%, which is much higher than most other EU countries.

Elsewhere, the Irish Government have been criticised by the Irish Fiscal Advisory Council for their excessive reliance on volatile corporation tax receipts in order to increase spending.

It was reported that between January and April, €27.9 billion was received in tax payments, according to the Exchequer returns for April, which also reported that this was an increase in €1.1 billion from the same period in 2025.

Income tax also saw an increase of €12.3 billion up until April, an increase of 5.7%, indicating that the jobs market remains strong. It also emerged that Value Added Tax (VAT) increased by 4.5% so far this year, reporting that consumer spending was healthy.

The State has reportedly received more in tax so far this year compared to last year, when payments following the Apple Tax case made last year are excluded.

The Exchequer balance has seen a decrease of €4.2 billion for the first four months of this year due to payments to the Government's long term savings funds. Reports also show that excise decrease by 1.8% this year, while corporation increase to 8.6% in that same period.

April is also not a significant month for VAT or corporation tax payments.

In other news, Taoiseach Micheál Martin said that he remains committed to building reconciliation and mutual trust across the island of Ireland ahead of a series of meetings in Belfast regarding issues such as politics, business and cross-border cooperation. More on this here. 

Written by Dalton MacNamee

Dalton Mac Namee is a content writer for Classichits.ie and a freelance GAA reporter from Louth, Ireland.

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