Irish economy returns to growth

Minister for Finance, Michael McGrath, said: “Overall corporate tax revenues have recovered after a sharp drop in the first quarter of the year and are now level with the same period last year.”

He again cautioned that these revenues are “volatile” and “we cannot necessarily rely on some of these receipts into the future.”

He is expected to set out the broad tax and spending parameters for the country’s next budget in the coming weeks.

An independent budget watchdog, the Irish Fiscal Advisory Council (Ifac) has warned the minister not to plan an “everything now” budget.

It said that tax cuts and spending increases could overheat the economy which is already “operating at or above capacity.”

“The jobs market is tight, with record high employment and record low unemployment. Inflation is falling, but underlying measure remain high,” it added.