Exchequer revenue continued its growth trajectory in February driven by strong tax receipts once again.

Gross revenue at the end of the month stood at €14.8bn, up 8.5pc on the same period last year when exceptional factors were stripped out, according to the Department of Finance.

That figure was mostly made up of €11.4bn in cumulative tax receipts for the year, which was up 12.5pc.

As in previous months, robust income tax, corporation tax and VAT significantly boosted revenue, in a sign of continued post-pandemic economic recovery.

“Today’s figures show that tax receipts continued to record robust growth in the opening months of this year,” said Minister for Finance Michael McGrath. “In particular, the solid growth in income tax and VAT receipts are a positive signal of the resilience of the domestic economy, and underline the strong employment performance with almost 2.6 million now at work.”

VAT receipts, however, were inflated by a technical factor which, when adjusted for, meant overall tax collection in the year to date was a slightly less impressive 10.5pc higher.

February was a bumper month, though, with €3.9bn in taxes coming into the Exchequery, which was 13pc higher than the same month in 2022.

On a 12 month rolling basis, which gives a more accurate view of the balance of tax and spending, the Exchequer has a €1.5bn surplus.

However, just looking at 2023, the Exchequer recorded a €2.5bn deficit compared to a €900m surplus at the same time of year in 2022. The €3.9bn negative swing was due to the transfer of €4bn to the National Pension Reserve Fund.

While income tax receipts continued to increase, they have slowed down relative to very strong growth in recent months. The figure came in at €2.2bn for February, just €100m more than the same month last year. On a cumulative basis, income tax is 7.5pc ahead of where it was in 2022.

Corporate taxes continued to rise, as well, although February is not typically a major month for collecting it.

The department said preliminary indications show increased profitability among large companies across a range of sectors, suggesting bumper corporate taxes will again be a major factor in the public finances this year.

February is a non-VAT month, but receipts were nonetheless 15pc higher on an adjusted basis, a sign that consumer spending is holding up.