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Government and Corporations

Government and Corporations

Capital transfer of €14bn from non-financial corporations to government in 2024 Q3

CSO statistical publication, , 11am

Government (S.13)

The government surplus (net lending, B.9) was €15.4bn in the third quarter of 2024. This was up from an average €2.5bn surplus in the previous four quarters. Net capital transfers (D.9) received in this quarter were €14.0bn owing to receipts arising from a Court of Justice of the European Union ruling. In addition, income and wealth taxes (D.5, which include PAYE and corporation tax) was up 17% (€2.0bn) on Q3 2023 to €13.9bn. Taxes on production (D.2) were also up, giving a total increase in tax take of €2.6bn.

On the expenditure side, final consumption expenditure (P.3) rose by 5% to €17bn year on year, while social protection (D.62) rose by 6% to €7.5bn. Further details are shown in Figure 2.1, below.

Government balance (B.9)/quarterly GDP
2024Q1 0.33
2024Q2 3.08
2024Q3 11.19
Table 2.1 S.13 General Government

Non-Financial Corporations (S.11)

The Gross Value Added by Non-Financial Corporations increased by €5bn in Q3 2024 compared to the same period in 2023. This drove the increase in GDP for the country as a whole.

The change in GVA by activity is illustrated in Figure 2.2. All sectors grew in the quarter. There was an increase of €1.8bn in the GVA of the Information & Communication sector, and value added by the Professional, Administrative & Support Services sector went up by €1.5bn compared to Q3 2023.

The sequence of accounts after GVA is summarised in Table 2.2. The €5bn increase in GVA was split between its labour element (Compensation of Employees, CoE, D.1) and its capital element (Gross Operating Surplus, GOS, B.2A3G) in a ratio of 1:3. CoE grew by €1.2bn to €24.5bn and GOS was €3.6bn higher at €75.6bn (taxes and subsidies account for the remainder of the change). The sector received higher income inflows from abroad on its investments (up €3.9bn to €18.8bn). On the back of higher profits, the investment income outflows were also higher (up €8.0bn to €51.6bn) and taxes were €1.3bn higher. This left the Gross Saving (B.8g) at €37.8bn, which was €1.7bn lower than the third quarter of last year.

Net transfers paid to government were €14bn owing to the Court of Justice of the European Union ruling. Capital investment (P.5) was €20.3bn, similar to the level in Q3 2023 (€21.1bn), but up significantly on the outlier in Q2 2024 (€2.8bn). This left net lending (B.9) at €3.1bn, down from 16.8bn in the equivalent period last year.

Change since 2023Q3
Industry (excl. Construction) 0.97
Construction 0.27
Distribution, Transport, Hotels & Restaurants 0.08
Information & Communication 1.78
Professional, Admin & Support Services 1.52
Arts, Entertainment & Other Services 0.03
Table 2.2 S11 Non-Financial Corporations

Financial Corporations (S.12)

Gross investment income (D.4) flows of financial corporations were €112bn in Q3 2024: €56bn received and €56bn paid. These are increases on Q3 2023 when €50bn was received and €51bn was paid. The timing of investment income payments left the sector a net lender (B.9) of €1.9bn in the quarter. 

Most of the investment income flows relate to assets held overseas. As we can see from the International Accounts Table 1.5, the investment income (primary income) is mostly paid and received by Other Financial Intermediaries, such as non-pension investment funds. Thus, while the value of transactions are very high in the sub-sector, they have limited impact on the domestic economy. However, as well as the financial services provided within Ireland, these corporations did also pay €2.8bn in Compensation of Employees in the quarter, up €0.1bn on the same quarter last year, and corporation tax of €0.8bn, up €0.3bn on the same period last year.

Table 2.3 S12 Financial Corporations